Problems purchasing multiple replacements using 1031

[John S.]

First post on BP.

I have a mortgage free San Francisco south bay SFH. I am thinking of using the 1031 and buying multiple replacements in out-of-state market(s). I am planning on, but not feeling real comfortable with the idea of, using a turnkey company to acquire the replacement properties. I guess I am leaning this way because of the "one stop shopping" can provide an "acceptable inventory?" and minimizes the cost/time limits of the 1031 process.

I have no experience buying properties long-distance in a specified time frame.  Are there other options that would make my 1031 a success without using a turnkey company?

[Joshua Wright]

John S. If you don’t want to go the management company route and are comfortable with going passive, check out DSTs (Delaware Statutory Trusts). DSTs would allow you to diversify both geographically and by property type. At the dollar amount you mentioned, you could easily put together a portfolio of DSTs.

Dave Foster is right - value is definitely in the cash flow and leases with high quality tenants.

Nothing wrong with going direct investment route either. But I would definitely want to have boots on the ground and good feel for the management company you would work with.

You have to be Accredited to invest in DSTs by the way - $1m net worth excluding your personal residence or alternatively you meet certain income requirements.

Message me with questions. Good luck 👍🏼