1031 Exchange questions
Hey everyone! Newbie here. :-)
I have a couple of questions about the 1031 exchange I'm hoping to get answered or at least get a little better understanding on.
First, we own a property in Mexico that we've been renting out but is not really cash flowing. We have the property listed and are trying to sell it. Can we use money from that sale for a 1031 exchange for properties in the US since it's in Mexico?
Secondly, when our rental properties that we purchase using the 1031 are bringing in rent, can we collect that money that comes from tenants, or does that need to remain in the 1031 for the 12 - 18 months that the 1031 has to stay open?
Thirdly, would we be able to allocate some of the money from the sale of the Mexico house within a 1031 for renovations on the newly purchased rentals or is it set up to allow only for the purchase of the properties?
Thanks in advance for your help! My husband and I are really excited to be starting this chapter of our lives and to be a (small) part of the BP family!