Stressed about 1031 timeline. Advice needed!!!

[Chad Walker]

Hello everyone,

Timeline has got me freaking out a bit. Any advice you guys might have would be greatly appreciated. If you've seen some of my prior posts, you know that I am utilizing a 1031 exchange to defer taxes on some inherited farm land. We should close on the 15th of March, which sets the clock running for me to identify and close on new property. There are plenty of properties out there, but if I can't find a couple of deals, I'll have to purchase at market value and most of the multi property homes in my area have been up on the MLS for pretty long stretches so I doubt any of them will be jumping at a low offer.

With financing, barely any of the properties would cash flow and the ones that would are in super sketchy areas.  If I buy the properties outright, almost all would cash flow.  So I guess my question is this.  Am I making a big mistake buying properties outright at market value.  My thinking is that even though I won't be getting a great return (5-6%), I'll have 100% equity that will allow me to easily secure loans in the future.  At that point (without a looming deadline) I can begin investing properly.  Am I crazy to be thinking this way???

[Aaron Howell]

@Chad Walker ... @Caleb Heimsoth is right... Cleveland is the "Land of Plenty" right now but it is HOT HOT HOT ! You've gotta be ready to pounce when something comes on the MLS because lots of West Coast eyes are looking at it too (and East Coast eyes also).

I would leverage as much as possible.  No need to pay cash and give that interest deduction away to Uncle Sam.  You can find lots of Duplexes that will cashflow $300-500 / mo easily.