SFR 1031 exchange into a fourplex

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SFR 1031 exchange into a fourplex

Josh Fernandez
Rental Property Investor · Greenville, SC · Member since 2017 · 25 posts · 4 votes
Can I do a 1031 on my SFR (rental), and get a fourplex?
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  • Ryan BlakePro Member
    Lender · TX · Member since 2018 · 936 posts · 713 votes
    8y

    @Josh Fernandez Yes. Just have your paperwork set up at closing of the sale and then you will have 45 days to target your 4 plex. You may want to look before you sell. After the 45 days you have 180 to actually close on the targeted property.

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  • Dave FosterBusiness Member
    Qualified Intermediary for 1031 Exchanges · St. Petersburg, FL · Member since 2013 · 9k+ posts · 9k+ votes
    8y

    @Josh Fernandez, The type of real estate doesn't matter as long as you intend to hold it for investment purposes.  So a sale of a SF and 1031 into a MF is fine.  Using the sales proceeds in the 1031 as down payments on bigger or more replacements is a very common strategy.  

    One small correction to @Ryan Blakes great synopsis.  You do have to have your qualified intermediary in place prior to the closing of the sale.  And you do have 45 days after the sale to simply identify your potential replacement properties.  But the entire exchange period is 180 days - the 45 days is inside that 180.  So it's 45 to identify and 135 after that to close.

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