To 1031 or not... that is the question

[Vincent Serpico]

I am going to sell some property and am wrestling with whether to 1031 or take the tax hit and sit in the cash.

1031: Buy real estate now with tax deferred proceeds and cash flow now with 100% of the proceeds.But when (not if) the next crash comes, could lose up to 40% of value or more. 

Tax Hit and Save Cash: ~24% tax hit, but have cash for the next downturn, and can purchase more property with less capital, and potentially see greater gains as the market eventually recovers. 

I would greatly appreciate some perspective from experienced real estate investors with 10-15 years of experience (that means you lived through the Great Recession and had property during the last crash)

[Soh Tanaka]

One thing people often forget about the crash of 2008/9 is the fact that it took years to bottom out.This is just my view, but losing 24% (or whatever the tax rate is) guaranteed and waiting for years don't seem like a good plan. And this assumes that a very bad crash comes soon, AND you will be predict pretty accurately when to get back in the market.   

Soh