Updated about 7 years ago on .
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In need of some advice
So I currently have a few properties that I’m considering to sell and turn over into a 1031 exchange. Should I sell or hold these properties? We are currently trying to come up with a good strategy to get a head.
1. GA property value at $158k- rented
for $1200.
Owe $97k. to the bank.
2. MD property value at $125k- rented for
$1300.
Owe $67K. to the bank.
3. GA property value $106k- rented
for $925.
Owe $51k.
The plan is to sell these properties and reinvest in C class neighborhoods buying at 45k-55K.
paying off the bank and freeing up credit.
THE EXPECTED RENT FOR THE NEW PROPERTIES WOULD BE $700-$850. What are your thoughts? Thanks in advance.
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I think its a huge challenge as you have only so much time per 1031 rules...it seems like you'll have to find 2 to 3 $50k properties to properly achieve a 1031 exchange. Otherwise its a wasted effort. I recently did a 1031, sold one and had to buy 2...only problem was every time I found a property, I was getting outbid. Then I finally settled on something, just to complete the exchange.