I'm trying to wrap my head around a Construction 1031 and reaching out to see if anyone has ever done one before. I'm looking into buying a rental and then selling it in a year to 1031 into a new lot for new construction rental. I know the 180 day timeline still applies here but to what extent? Does the rental need to be 100% completed and ready to rent on day 181 or is there a certain level of completeness that could be meet but its not ready to rent?
Also how have you dealt with the design and permitting process? Do you already have something designed before you purchase the lot, even though the deal could fall through? Do you try to go in for permit even though you dont own the land yet or do you have to wait till after closing and just have to waste the first 30 days or more waiting for the review? Hoping theres no delays.
I'm trying to figure out how feasible this really is. 180 days is not a lot of time to construct much of anything so I know it will need to be modest in size and design. Any advice is much appreciated as well any other bits I'm missing that I should factor in would be very helpful.
Thanks in advance.
So, during that year, you could get your design ready, maybe do some research on modular built, instead of on site, which should cut down on the construction time.
I'm interested in this as well.