Looking for a market to park 1031 funds (Multi-family or STR)

6 Replies

Hi all,

I am looking for some advice on where to invest my proceeds of about 200k (down payment) from a 1031 exchange of a SFH in my market of California. I am wanting to park it in a cash-flowing market. I have some minimal experience with Short-Term Vacation rentals that I would like to expand on. Also, I am open to parking the money in a cash-flowing multifamily. I am looking for some market suggestions or resources where I can go ahead and analyze those markets. I have been so head down in my own market that I have not ventured off.

Any suggestions of markets would be greatly appreciated. I am looking in the 800k-1.1MM range. 

Thank you in advance!


Hi Ethan - not exactly what you're looking for but you said cash flowing so I thought I'd share. We've got a stabilized assisted living facility coming up in October paying 14% annually (monthly distributions). Happy to share more if interested.

Our rental market here in Redding CA is extremely tight right now, as is the market for homes for sale. We have several factors feeding that. A few years back there were hundreds of homes burned in the Carr Fire. Most of those have been rebuilt. Then there was another fire in Paradise where hundreds more people were displaced and they moved to our area. In addition there's a local ministry school that draws students from around the world, 2,000 or so, and they rent room space. 

Redding is on the northern end of the Central Valley. We have the Sacramento River that runs through the city, with hundreds of miles of trails,  Lake Shasta, Whiskeytown Lake, etc. Plus other tourist attractions such as Shasta Caverns, Castle Crags, Mt. Shasta, Mt. Lassen (Americas mainland 2 active volcanoes) Burney Falls. In addition, there's a huge redevelopment project going on in the Downtown area. 

The STR rental market here is very active. In fact, there's currently some interesting properties for sale for such. I'm a Realtor here and see opportunities all the time. It may take some patience to find the perfect property, but there's definitely opportunities.