1031 Exchange on a flip

[Terry Royce]

I have 2 properties that are getting ready to Settle in the next 30 days, I would like to do a 1031 Exchange either into another flip or into rentals. I have read conflicting info on this topic in regards to flips, can anyone provide more insight or direction? Thanks!

[Steve Babiak]

Originally posted by @Anthony Dooley:

In the future, if you want to use 1031 exchanges, let your closing attorney know this when you are buying the property, don't just wait until you want to sell it. You must use an attorney when doing a 1031 exchange. They hold the money from the sale and will release it to buy another like property. There is a time limit. You cannot touch the money or else you have to pay the capital gains taxes.

I think there is some confusing info in that post.

You don't have to use an attorney to close a 1031 exchange - but you must use a Qualified Intermediary (QI) who may or may not be an attorney.

When I buy a property to hold as a rental, I have no idea whether it is going to be relinquished down the road via 1031 exchange, so why would I involve a QI at that point as that post suggested?  Sure, when I buy a replacement property, i know it is part of a 1031 exchange so it goes through the QI, but otherwise buying a property does not involve a QI.