Updated over 7 years ago on . Most recent reply
1031 Home With Low Equity
Hey Team,
Tried doing some research on this and haven't quite come up with concrete answers. Could you help me understand what happens with a 1031 if a seller has low/no equity in the home? Here's an example:
- Purchase - $100k
- Mortgages:
- 1st - $100k
- 2nd - $100k
- Equity = $0
- Sale Price - $200
How would the 1031 be assessed if the sellers are bringing cash to close?
Cheers!
Andrew