Vacation home or long term rental??

[Daniel Engstrom]

My wife is getting about $550k from the sale of a family farm. Would prefer to not pay capital gains and do a 1031. Looking for either a vacation rental or adding another long term rental property. We live in Elkins, WV and would prefer to be within an hour or so of it. Thoughts?

[Dave Foster]

@Daniel Engstrom,  that property will qualify for a 1031.  @Timothy Doenges, Any type of investment property can be exchanged for any other kind.  Residential does qualify for a 1031 as long as it is residential used for investment.  So the farm will not be an issue.

Daniel it's a joke with a hint of truth.   but I tell everyone that no one should own a vacation or 2nd home. Everyone should own investment properties that use some for personal use.  If you have that mindset then you'll treat the property that way.  And that qualifies it for 1031 treatment.

So look away into your favorite vacation spots for your investment vacation rental!!!