1031 exchange for house to 4-plex in nevada

1031 Exchanges
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1031 exchange for house to 4-plex in nevada

Kristi KandelPro Member
Developer · Fort Myers Beach, FL · Member since 2018 · 383 posts · 195 votes

Hey guys! I own 3 investment properties and just went into escrow on my first property that I'm selling instead of buying. I want to do a 1031 exchange and want to make sure I do it right. The home I'm selling is in nevada and it's a 3/2 townhome. I plan on rolling it into a 4-plex rental property also in nevada. I would really appreciate any guidance you guys can provide. 

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Natalie KolodijBusiness Member
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Tax Strategist| National Tax Educator| Accepting New Clients · Member since 2014 · 3k+ posts · 4k+ votes
7y

@Kristi Kandel 

There are two AMAZING options here on Bigger Pockets. 

I would talk to 

@Dave Foster and @Bill Exeter 

Either of these guys will take care of you and make sure your exchange goes well!

It is important to ensure that you have a search kind of going ahead of time- there is a strict timeline. You an also look into a reverse 1031 if building is something you're interested in.

I'll let the experts chime in though :) 

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  • Tj M.
    Real Estate Investor · Reno, NV · Member since 2016 · 71 posts · 67 votes
    7y
    @Kristi Kandel The lesson I learned from my first failed 1030 is to already have a new property ready to buy. I ran out of time trying to find the next deal and paid a bunch in taxes. So if you don’t already have a property picked start looking immediately. Good luck
    1Reply
  • Kristi KandelPro Member
    OP
    Developer · Fort Myers Beach, FL · Member since 2018 · 383 posts · 195 votes
    7y

    Any suggestions on who to help facilitate the 1031 exchange? 

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  • Natalie KolodijBusiness Member
    Moderator
    Tax Strategist| National Tax Educator| Accepting New Clients · Member since 2014 · 3k+ posts · 4k+ votes
    7y

    @Kristi Kandel 

    There are two AMAZING options here on Bigger Pockets. 

    I would talk to 

    @Dave Foster and @Bill Exeter 

    Either of these guys will take care of you and make sure your exchange goes well!

    It is important to ensure that you have a search kind of going ahead of time- there is a strict timeline. You an also look into a reverse 1031 if building is something you're interested in.

    I'll let the experts chime in though :) 

    Podcast Guest on Show Pay Less Tax to the IRS This Year With THESE Real Estate Tax Strategies
    Kolodij Tax & Consulting
    WebsiteView Page
    3Reply
  • Bjorn AhlbladPro Member
    Investor · Shelton, WA · Member since 2017 · 6k+ posts · 6k+ votes
    7y

    @Kristi Kandel 1031 exchanges only work if the rules are followed; you need an expert like @Dave Foster involved and probably your CPA as well. If you don't have an accountant at this stage of your business now would be a good time to get one. All the best!

    1Reply
  • Dave FosterBusiness Member
    Qualified Intermediary for 1031 Exchanges · St. Petersburg, FL · Member since 2013 · 9k+ posts · 9k+ votes
    7y

    @Kristi Kandel I appreciate the shout out from @Bjorn Ahlblad and @Natalie Kolodij  and I'm happy to interface with you off line to discuss your specific situation.   

    They are absolutely right, the most important thing is to have your Qualified Intermediary in place before the sale of your property. If the property is sold before a QI is put in place an exchange cannot take place. It's a requirement for the exchange to happen.  And by involving your QI as soon as possible you can benefit from their guidance early in the process to avoid some of those 'gotchas' like @Tj M. was describing.  

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  • Tony Kim
    Rental Property Investor · Los Angeles · Member since 2018 · 844 posts · 1k+ votes
    7y
    Originally posted by @Dave Foster:

    @Kristi Kandel I appreciate the shout out from @Bjorn Ahlblad and @Natalie Kolodij  and I'm happy to interface with you off line to discuss your specific situation.   

    They are absolutely right, the most important thing is to have your Qualified Intermediary in place before the sale of your property. If the property is sold before a QI is put in place an exchange cannot take place. It's a requirement for the exchange to happen.  And by involving your QI as soon as possible you can benefit from their guidance early in the process to avoid some of those 'gotchas' like @Tj M. was describing.  

    After spending a lot of time looking at various different QI's, I ended up using Dave Foster. I contacted several of the largest QI providers and none came close to the internal controls they have in place to make sure your funds are safe and secure. After all, probably the single most important thing is the peace of mind that your funds will not be at any risk whatsoever. Dave's company is the only one that truly provided this. Oh, and there's also the fact his knowledge is unmatched when it comes to 1031 exchanges.

    1Reply
  • Kristi KandelPro Member
    OP
    Developer · Fort Myers Beach, FL · Member since 2018 · 383 posts · 195 votes
    7y

    Thank you all for your insight! I'm now connected with an expert and setting things up nicely for the 1031. The property I had my eyes on to invest in next verbally agreed so I am looking good on timing as well. I really appreciate the network we've created on this platform!

    0Reply
  • Cary Crites
    Rental Property Investor · Reno, NV · Member since 2018 · 18 posts · 9 votes
    7y

    Hey @Kristi Kandel , nice to meet you. Are you looking to buy in the Northern Nevada area? I've researched a few properties in the area that look interesting for buy & hold potential. I'm not looking for a cut on the action, just want to see them go to someone within the BP network. Let me know :)

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  • Kristi KandelPro Member
    OP
    Developer · Fort Myers Beach, FL · Member since 2018 · 383 posts · 195 votes
    7y

    @Cary Crites I'm focusing on the Tahoe area now but I'd be interested in Reno too. 

    0Reply
  • Colleen McKoy
    Real Estate Agent · Carson City, NV · Member since 2013 · 67 posts · 11 votes
    7y

    @Kristi Kandel I listed a vacation rental townhouse in the Lake Village HOA in Zephyr Cove today for sale. It's 4 bedrooms 3 bathrooms with partial lake views and a hot tub on the patio. The HOA has a pool, spa, club house, tennis and snow removal. The owner is getting $470/night and on holidays $750/night. I listed the property for $535,000. A few dates are already booked in the coming months.

    Let me know if you are interested. 

    Colleen McKoy, Broker at Brick & Mortar Properties

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  • Kristi KandelPro Member
    OP
    Developer · Fort Myers Beach, FL · Member since 2018 · 383 posts · 195 votes
    7y

    Thank you Colleen. I actually own two townhomes in Lake Village already. It is a prime location for vacation rentals now that we got the HOA to back down on the ban they were trying to pass the last 18 months. I'm going for bigger multi-family properties now.

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  • Richard Sherman
    Rental Property Investor · Salem, OR · Member since 2017 · 696 posts · 660 votes
    7y

    @Kristi Kandel lots of good advice above.  100% make sure you understand the process.  I would also shop prices for accommodators.  The best deal I have found was through the title agency I use and the accommodators have been AWESOME!  in the past 2 years we have done  3 successful 1031s ( 4 into 1, 2 into 1 and 1 into 7 (low priced Memphis houses using value rule for replacement properties).  Absolutely have an idea on the properties you will use as your replacement before you close and maybe write in some wiggle room on your sales contract with the properties you are selling if the buyer will play ball.

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  • Kristi KandelPro Member
    OP
    Developer · Fort Myers Beach, FL · Member since 2018 · 383 posts · 195 votes
    7y

    @Marian Huish I'm looking for 4-plex units or larger and it just depends on the price range. 

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  • Mike Faulkenberry
    Real Estate Agent · Grass Valley, CA · Member since 2015 · 25 posts · 2 votes
    7y

    @Cary Crites if you have some properties in mind that are local to Reno/Sparks I would be interested. I am looking for a fixer upper to put in some sweat equity if you know of any properties. let me know. Thanks

    0Reply
  • Sam Stout
    Flipper/Rehabber · Reno, NV · Member since 2016 · 235 posts · 35 votes
    7y

    @Mike Faulkenberry I can help you find a fixer in Reno....PM me

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