Help. This is something new to me.. 1031 Exchange Bad invest.

[Thomas Allt]

Hello Everyone,

I am a newer investor. I have a property in California that was purchase at the wrong time of the 2007-2008 era. Top of market. Dropped the value down a lot. Anyways. Currently the property has about 10k-14k equity in it and want to dump it. Its hard to rent out. 55+ older community, HOA, Bakersfield etc. All bad and was not one of my better decisions in life :) I want to do a 1031 exchange to a house in Idaho. House in California is about 180k Value and the Idaho is 160-165k. Want to take cash in hand and equity from the California house to purchase the Idaho house. These are investment properties. I have and still reading the 1031 IRS rules.

Questions Trying to Answer:

1. Is there anything(Besides the time allowed) that I should be concerned about or look more into?

2. This house in under my mother's name. So when she passes I will inherit it from here and was wondering if I would inherit it with the 1031 still hanging over it or would I get the house in reset mode and all appreciation and such are reset. (This is her question not mine. I am not planning anything:) )

Thank you all for the help!

Thomas A

[Mike Hanneman]

With that little equity in it you will hardly get anything after the sale once closing costs and the realtors commisions are taken out. You should run the numbers with your actual figures but from just looking at it you won't get to pocket or 1031 exchange more than a few thousand, that's not worth it in my eyes. Isn't that area appreciating like crazy? Might want to hold on to it a bit longer??