1031 Exchange to Primary while converting to rental?

Question

I've been unofficially advised this is not OK, but thought I'd ask.

I have just sold my rental property that's all set up for a 1031 exchange (45 days starts today). I also have my primary residence that I've considered renting out when we move. Is it possible to invest the exchange proceeds into the property that I already own (refinance and add equity) while converting it to an investment property?

Thanks for any advice!

Dave Foster · Answer

@Jody Des Roches, the 1031 exchange is a sale of investment property followed by a purchase of new investment property. You cannot exchange into a property you already own.

Jody D. · Answer

Thank you both for the confirmation. I'll continue the seach for a new investment.

1031 Exchange to Primary while converting to rental?

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