1031 exchange into FHA 203k
Hi BP!
I need your help.
A family member is going to be selling an investment SFH, with the profit to be re-invested into a student housing SFH via 1031 exchange.
Lord willing, my family is going to buy a SFH on an FHA 203K with the intention of rehabbing, owner occupying for 6-12 months, refinancing out of the FHA, moving into another place, renting out the rehabbed SFH to students, pulling equity out and Utilizing another FHA203k for a permanent place for my family.
There are 2 goals:
1) plow the equity from the family investment property into something else for the 1031 tax deferment.
2) take advantage of the FHA 203K for the forced appreciation afforded by the rehab.
Here’s where I need help:
How can we best set up the SFH initially to meet both criteria? (entity type?) Does this family member need to be on title deed? Do we establish a notarized contract and nothing more?
Shawn Evans