To Exchange or Not To Exchange, that is the question?

[Michael Greenberg]

I am a current investor in short-term rentals (STR's) in Arizona, with (4) properties that have performed very well. For personal and "other" reasons, we no longer want to manage STR's, and long term rental returns are not favorable. My pro-forma shows a 7% tax burden of the gross proceeds. While a 1031x is a viable option, and based upon this % of gross, what would you do?

Thanks in advance for you input and stay safe and healthy!

Mike

[Paul Welden]

Maybe consider doing 1031 into commercial property. 

Or even 1031 into another LTR investment that you could eventually move into as your primary residence. Then, once you move in to is as your primary, I wonder if that could eventually eliminate the deferred taxes associated with 1031?????