My long term goal is to 1031 exchange a portfolio of residential investment properties (ideally all multiplexes, but probably some 1-2%/mo sfrs) into a larger commercial property, ideally 15+ units, with a much more hands off operation. 

with that in mind, would it be better for me to save up for a larger down payment and never live in my properties, only manage from within 50-75miles (my Dallas proper neighborhood is NOT in my current budget right now) or would it be okay to #HOUSEHACK my first one and then househack a second one in 18-24months, etc. 

anyone go down this path before that can offer some advice? TLDR: find a portfolio buyer for the residential units, and exchange all that capital for a downpayment on a large commercial property. 

any thoughts/comments/critiques are much appreciated. 

dan

Originally posted by @Daniel Porter :

My long term goal is to 1031 exchange a portfolio of residential investment properties (ideally all multiplexes, but probably some 1-2%/mo sfrs) into a larger commercial property, ideally 15+ units, with a much more hands off operation. 

with that in mind, would it be better for me to save up for a larger down payment and never live in my properties, only manage from within 50-75miles (my Dallas proper neighborhood is NOT in my current budget right now) or would it be okay to #HOUSEHACK my first one and then househack a second one in 18-24months, etc. 

anyone go down this path before that can offer some advice? TLDR: find a portfolio buyer for the residential units, and exchange all that capital for a downpayment on a large commercial property. 

any thoughts/comments/critiques are much appreciated. 

dan

 House Hacking is a great way to get started with real estate.  My wife and I have done just that, buy a house live in it a year or so and then move to the next one.  I honestly think that is the absolute best way towards wealth when you are first getting started in real estate.

Remember on a 1031 exchange you have to have turned the property into a rental for the last two years.

Thanks Bart!