$1.4M 1031 exchange 10 days left... Texas? Idaho?

Question

Hello BP,

Recently I sold a property and did a reverse 1031 exchange where I was able to put $3M of the profits in a different property. Unforchantly I still need to identify an additional property where I can put up to $1.4M into it within the next 10 days or Uncle Sam will be getting a good pay-day. Does anyone have any creative ideas? I have been looking at Austin Texas area and developments in Idaho. Let me know if there are other areas that I should look into. Also, if anyone has any apartment buildings they are looking to sell or know of any that are coming up please let me know!

James Carlson · Answer

@Gabriel Eisenhuth

I'm biased because I live in a very Austin-like town (Denver), but I think Austin is a great buy. For long-term parking of money, you can't do much better. The appreciation potential is huge down there. A diversified economy, great quality of life, relatively affordable real estate (for now).

Of course, I'd throw Denver in there as well, but if you're already considering Austin, that would be my vote as well.

Good luck!

Carlos Ptriawan · Answer

Also Greg company and some other oil company always welcoming the rest of 1031 funds, they're always available for people that desperate on closing of 1031.

Carlos Ptriawan · Answer

invest at DST as backup, preferably w/ Sec 721 combination. You could also invest at MF but only possible with TIC on time is the essence, which means almost impossible.

Scott Wolf · Answer

@Gabriel Eisenhuth, if you need a connection to a DST provider, I can connect you with one.  It's probably not your first choice, but definitely will save the taxes.

Joe Blakley · Answer

Just throwing out a deal I ran across recently. May be helpful, may not be...  $880K total for two rent ready fourplexes in Idaho Falls, ID (2 separate properties) - Rents should be $800 per unit within the next few months. Total taxes about 10K annually. Not my deals, but I checked them out this week and they looked pretty solid and low maintenance.  In a great location with plenty of exposure.  Should cash flow reasonably well for this market. FSBO.  Let me know if you want some contact info for the guy.  Super strong and appreciating market. Consistently in the top 10 or so of "best places" in America.

No upside in it for me, but hate to see a good 1031 expire.

Kevin Kohler · Answer

@Gabriel Eisenhuth i can find you one on that range by Friday. Sent you a request.

Dan Rowley · Answer

I agree with @Mike D'Arrigo that 10 days is really pushing it to really get enough intel to make an informed decision.  So I wish you luck!

Mike D'Arrigo · Answer

@Gabriel Eisenhuth the only creative idea I can come up with is to invent a time machine and go back at least 35 days to the start of your identification period. Inventory is extremely tight in many markets and it's going to be tough finding something with just 10 days left.

Jordan Moorhead · Answer

@Gabriel Eisenhuth I've had my eye on one property for $1.5 in Austin

Don Spafford · Answer

@Gabriel Eisenhuth I don't know for sure about this, but maybe someone can answer, can you 1031 into a syndication? I know of a few syndication deals I'm working with where you could park that money for a few years. Alternatively I am aware of a 26 unit property that was just sent to me this last week that I am interested in but I have not fully vetted it yet, in MO asking $1.25M, you could then use the remaining amount to possibly purchase some smaller properties or as a down payment still on something else. Are you looking to use it all to buy something in cash or use as a down payment? If you have that much available you can make some strong offers in any market. PM me if you would like more details on anything I mentioned.

$1.4M 1031 exchange 10 days left... Texas? Idaho?

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