Seller financing, 1031 Exchange, Lease Option
Hi all,
I'm considering selling my SFH rental property in Parker, CO via owner financing and 1031 exchange. As some of you may know, CO is currently in a HOT market and Parker continues to grow steadily as a suburb in the southern Denver metro area. My current tenants have been in the property since 2013 and their lease is up end of June, 2017. Current rent is $2100/mos., about $200 less than current market rents. However, my tenants rent is locked in until the end of their above stated lease.
I want to leverage some of the equity (approximately $130K-$150K) I have built up in that property in order to purchase and grow my RE biz and portfolio. I'm planning on meeting with an RE tax attorney about this when I go to CO next month, as I currently live in IL. Cash out refi and heloc are not seeming options at this juncture since I just officially started my RE investing business, am self employed (debt/income ratio) and I'm working on improving my FICO scores.
Thought some of you more seasoned investors / experts could give me more insight on how to structure this and/or other possible exit strategies in this situation in order to reduce my capital gains tax?
Thanks in advance!!
Aleta