100,000 to invest in 1031

7 Replies

(1) should I invest the $100,000 1031 money into a $100,000 rental ...? (2) Go BIGGER “ & purchase a Nicer rental for $200,000 and use the banks money to finance the remainder ? (3) invest in a investment pool for a 7 million apartment complex ? Thanks
Originally posted by @Barbara Hlavaty :
(1) should I invest the $100,000 1031 money into a $100,000 rental ...? (2) Go BIGGER “ & purchase a Nicer rental for $200,000 and use the banks money to finance the remainder ? (3) invest in a investment pool for a 7 million apartment complex ? Thanks

 One option is I'd do a 1031 on 3136 W Thunderbird Phoenix AZ with you and carry the difference. We could make it cash flowing for you.

I would definitely weigh your options and also ask yourself why you are doing a 1031 exchange in the first place? Is it to solely pull your equity? Find more cash flow? Diversify your portfolio?

@Barbara Hlavaty I think first of all, you have to figure out for yourself whether you want to be active with this next investment or passive?! That'll help you narrow your focus - buy a rental (small or large) versus invest in pool of money as you called it - which I assume you're referring to syndication. Btw, you're not allowed to 1031 into a syndication. However you can 1031 into the so-called partial interest purchase. 

If you need more help or recommendations, feel free to PM me directly.

Best!

Originally posted by @Barbara Hlavaty :
(3) invest in a investment pool for a 7 million apartment complex ? 

I'm still really new, but I'm not a fan of this option because of the lack of control. I firmly believe having control over your investments offers greater potential to grow and expand. 

Here's what I would do with a 1031. I would try and get a multi-unit property, although I'm not a US investor so correct me if I'm wrong, but by leveraging it as a 20% down payment, you're able to get a 4 or 5 unit property, which, with the right property, could be a cash flow BEAST, but I would be sure to factor in everything conservatively and definitely keep property management in mind. 

I hope this helped, it's just my two cents and I wish you luck!

Peter

@Barbara Hlavaty Why not go BIGLY with a $400,000 multiplex? You can put 25% down ($100,000) and possibly pay closing out of pocket.

Just to make sure, you used an 1031 intermediary for the sale that yielded the $100k, right? Because if not, you cannot 1031 exchange into a new property.