How would you best optimize a 1031 in a hot market?

[Brent Van de Graaff]

Hi,

I am about to open a 1031 and anticipate buying 2 or 3 homes ($120-180k ea.) in the Nashville/Middle Tennessee area, which is a very hot market with limited inventory. 

I haven't sold my existing investment property yet (fingers crossed for a closing next week), so the 45-day identification period hasn't officially started, but I'm trying to formulate my strategy to make sure I make the most of it.

What are your best approaches to "buy right" so to speak when you're up against the 1031 clock and battling a competitive market?

Brent

[Russell Brazil]

My strategy with 1031's is first to identify the property that you want to purchase, then put in an offer on it contingent on doing the 1031 exchange.  This will take that ticking timer counting down to tax Armageddon out of the equation entirely.