Anxious about doing a 1031 Exchange
Hi BP,
Feeling anxious about doing a 1031 on a property in CA. We want to get out of the Berkeley rental market and are looking to diversify and get more cash flow. Our long term tenant is looking to move, finally. Feel like we need to seize the opportunity and sell. Property may sell for around 1.1 mil. We owe about 400K. Would like to purchase at least 2 properties. Maybe a multi family, but that seems hard to find in such a short amount of time. Want to be in a market outside of CA. We currently own 7 doors in Tulsa, Oklahoma. It's my understanding we have to spend what we sell the property for minus fees. That means we will need to finance the $400k. We are worried we won't qualify for new financing. Self employment income is low last couple of years and we have several mortgages on other rentals. We do have a good amount of dollars in retirement funds. So what happens if we can't get financing?
Was wondering if we should try to partner on one or both of the new properties? But I thought we have to hold new properties in the same type of entity so can't do a LLC. Is there another way to do a partnership?
Looking for thoughts and suggestions.
Heidi