Reverse 1031 exchange
I have a rental i'm looking to do a 1031 exchange with for a new property yet tbd with eventual conversion to primary residence. I've read some on both a regular and reverse exchange and am looking for advice on what would be my best option.
It seems the reverse is a little more complicated and expensive?. What are the typical costs for both? My property is 900k with a 250k mtg. What are the complications for a reverse? Is my cost basis 900k sales price minus all costs and commissions of sale?
The reverse seems like alot less pressure with the advantage being
1) To find the perfect new property with no time constraint and worries of the sale falling through and the 1031 not working.
2) Maximizing rental income by being able to rent out new property upon closing and rent out old property until sale. Also gives 6months to sell old place and give notice to current tenants of selling intentions.
Cons being maybe cost and complication which im not sure of... Will i be able to get a loan for 250k being retired with no w2 income? I will be able to pay 650k cash down.
Are there ways to structure a regular 1031 exchange to avoid some of the pressure of having to find a new property within 45 days and worrying about it falling through with no good options?
Thanks for any help
Jason