How hard would it be for a newbie to 1031 a house into notes?

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If I've never done a 1031 or notes how bad/hard would it be for me to try to liquidate a house (I'll net about 170k) and use my QI to hold the money and obtain notes instead of new properties?  I assume this is a valid use of the 1031, since it can be used to swap houses for land, commercial buildings, etc.

Would there be a problem finding the notes within 45 days?  What does one look for to get a good return on the note but not get a second-position note (or is that OK)?  Does anyone on here specialize in arranging such a transaction?

Bad news @Paul Doherty.  It's a non-starter from the get go.  Investment real estate and notes are not considered to be like kind.  The notes are a financial instrument and in order to qualify for 1031 treatment when you sell investment real estate you must purchase more investment real estate.  Notes do not count as real estate even though they may secure real estate.

The good news for you is that there are some other options that the IRS considers to be "like kind" for investment real estate that might work for you.  Interests in Delaware Statutory Trusts as well as tennants in common projects and a host of real estate ownership opportunities that might be more passive in nature than you have now.  

If you're set on buying notes then you'll either have to pay the tax on your profit and then invest or keep the house and tap the equity and use that to invest. 

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