I have a single family home that I've been renting for 10yrs. I am in the process of selling it and doing my first 1031 exchange. Can I use a 1031 exchange to buy a duplex (multi family) or do I have to buy another single family home?
@Dylan Hagen , you can take the sale of one house and use that money towards the purchase of more than one property. However, I strongly recommend you get a GOOD Qualified Intermediary. Find one with a stellar reputation and connect with them BEFORE you list this property for sale. There are so many details you HAVE to get right.
You can 1031 it into any other “like kind” property. That can be single family, multi, self storage, commercial, office, etc. Even completely passive investments if you want. Just think of it as investment property for another investment property to make it simple.
If you need a good QI, I suggest you speak with no one other than @Dave Foster . I think he was born on 10/31, his street address is likely 1031, and his middle name is probably “tenthirtyone”. Literally Dave eats, sleeps, and breathes anything and everything 1031 related.
@Dylan Hagen , the "like kind" in like kind exchange means it's use not nature. Any kind of investment real estate can be exchanged for any other type of investment real estate. So you can change sectors from residential to commercial or SF to MF. And you can change geography anywhere in the US, the USVI Guam or American Samoa. And you can change numbers and sell one and buy two or more allocating your proceeds in whatever way you wish.
As @Mindy Jensen , you must use a Qualified Intermediary and they must be in place prior to the sale of your old property.
@Brandon M. Tenthirtyone was one of the options for my middle son. Once we learned that Moon Unit and Dweezil had already been taken by the Zappas :)
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