Best 1031 Options for New REI

[Matt S.]

Hi All

I'm looking for some advice on an upcoming 1031...I have one rental a property, a condo in NYC, that's currently under contract. We'll likely close in a month or so. I'm planning to do a 1031 because like the idea of deferring taxes, but given that I have limited REI experience I'm concerned about forcing a bad deal to avoid taxes. I'm focused on cash flow rather than appreciation, so investing in NYC doesn't make sense. Curious what folks' thoughts are the on best 1031 options for new investors.

Ideally, I would like to find a small MF (or two) in a strong cash flow market. But given that the clock is ticking (about 75 days), and I don't have a team or infrastructure in place (broker, PM, etc), I'm not sure how likely that is.

I've spoken with a couple folks who broker DSTs, but the returns are low (7% max) and the exit options aren't great. There are a couple MF syndicators who will take 1031 funds (as a TIC alongside the syndication LLC), but their closing has to line up with your time. I like this idea, but not all syndicators are willing to do this.

Partnering would probably be a good idea as well; finding someone with experience who needs additional funding for projects. But once again, with the clock ticking, I'd need to set the wheels in motion soon.

I would appreciate any advice.

Thanks,

Matt