1031 Exchange Question

[Amanda Glendenning]

Scenario:

Single-family home purchased for 49K.  

Rehab: 25k

If we sell for 95k and want to 1031 exchange does the next property have to be more than selling price or does it simply have to be more than original purchase price? 

Thanks 

[Andrew Freed]

@Amanda Glendenning - I'm not a 1031 expert, however I am pretty sure you cannot 1031 a flip. You can only 1031 something you intend to hold and not re-sale. Hence it might make sense to rehab the property, toss a renter in there for a year and then 1031 it. I recommend reaching out to a 1031 specialist and having this conversation with them and seeing what they recommend for a solution.