1031 exchange to get out of little-to-no equity property?
Hello,
I have a 2/2 condo in a large 340-unit condo conversion property in Savannah, GA that I am dying to get rid of. Originally purchased in 2006 (at the tippy top top of market as I was getting out of school) as primary residence, and it has been a rental since 2009. Paid $168K. It is now maybe worth $130-140K. I owe $124K on it. Property has always rented well (use a property manager) but due to crazy POA fees I am still losing about $100 a month in cash flow. Have grown very tired of watching property values go nowhere with this property while here in Charlotte (where I live) values are going nuts (not to mention I want a local rental so I can manage myself).
My plan was always to sell this and 1031 into a rental in Charlotte, but would have never guessed in a million years the property wouldnt be worth what I paid for it more than 10 years later. Ready to get rid of it. Current tenant's lease is up end of June.
My question is: even with little to no equity, could I 1031 into a new property in the $100K range here in Charlotte area? Would have no trouble getting approved for financing, but curious what that deal might look like and what sort of things I would need to pay attention to. Would very much appreciate some suggestions here.
Thanks,
Coley