Newbie investor recent purchase AND Question about 1031 exchange
Hey! Just wanted to introduce myself to BP and ask a quick question. Although I've been a member for some months now, this is my first post.
I'm a newbie investor from St. Paul, MN and I partnered with my brother to purchase our first investment. We've owned for about 6 months and everything has gone smooth. Investment details- FHA, Owner Occupy, Multifamily (duplex), House hack. Since our purchase the market has started to level out but noticeable increase in the value of our property nevertheless. 1 month of sweat equity and a fresh paint job, the place looks pristine. We are living for cheap considering the area and if or when we move out and rent out the entire place there will be a nice cash flow.
My question is about 1031 exchange.
Since we purchased as FHA owner occupy, we must reside in this residence for 2 of the next 5 years to fulfill our lender requirements. However, is it possible to sell before we fulfill the 2 year residence requirement and use a 1031 exchange toward our next purchase, which would be a bigger owner occupy multifamily?
Does it make sense to leverage our duplex to scale into a bigger multifamily? Or do we hold our duplex and take out a second loan to purchase the bigger multifamily?
Thx,
Michael