
1031 Exchange a Rental into a 2nd Home?
Hello BP,
I want to 1031 exchange a Long Term Rental Property into a Beach Condo. I want to buy the Beach Condo as a 2nd Home so I can get a lower down payment. Can I 1031 Exchange a Rental into a 2nd Home?
Reason for Question:
I have enough equity (without paying cap gain tax) in my rental for a 10% downpayment on a specific beach condo I want, but I don't have enough equity for a 20-25% downpayment on that same specific beach condo I want. If I simply sell my rental and pay cap gains tax, I will not have enough cash for a 10% downpayment on that beach condo I want. Hence my question above.
Thanks