1031 exchange on a remote property

[Kao Nou Xiong]

Hi everyone,

        I got a friend trying to do a 1031 exchange. Given it's a sellers market and interest rates are low, does it make sense to sell a remote investment property, 1031 exchange it to another market property, and make double the cashflow? To me it's a no brainer given, but am I missing anything?

Thanks. 

[Dave Foster]

@Kao Nou Xiong, the best time to start a 1031 and sell an investment property  (a seller's market) is also the worst time to buy the replacement.  The worst time to sell  and start a 1031 (a buyers market) is also the best time to buy and finish one.

There's always going to be a challenge so it really just becomes a matter of focused execution.  I prefer to sell and move into cash flow late in a market rather than wait through a downturn to get more appreciation.