1031 Exchange and build an ADU

[Account Closed]

We are looking at selling a single family rental we have in the Portland area and buying another house in central Oregon - ideally we would like to build an ADU on the same property and live in the ADU while keeping the main house rented out.

Can anyone advise if this is possible and if so how should we look at structuring the deal? I'm assuming that we will have to subdivide the property through the city, essentially making 2 properties, once the property has been identified and we will work with a local broker to ensure that any property is suitable obviously.  Does anyone with any experience in similar situations and in particular how the portion of the land that is transferred to personal use would be handled?

Appreciate any suggestions.

[Wayne Brooks]

The concept of an ADU is that it is an accessory dwelling on the Same lot as an existing home.
Subdividing and building would not be an ADU.