Should I sell my Condo on 1031 or no??

Question

Hello, I have a condo in the Newark CA area which is about 15 min from Silicon Valley. I've owned it for 22yrs and been a rental now for 17yrs. I have about $250K in equity and the rent is a wash compared to my obligation. So, I wanted to get others opinions on whether or not I should consider a 1031 and use that $250K to purchase another rental or tow or three that I could get probably get to cash flow between $1K - $1500/mo compare to no cash flow at the moment?? Thanks in advance.

Dave Foster · Answer

@Brad Cashflow,

Keep your eye on depreciation as well. You've got another 10 years or so left on the depreciation cycle on that property. But a 1031 into several properties using the proceeds as down payments would greatly increase your depreciable basis. And that translates into real dollars in your pocket at the end of the year.

Brad Louden · Answer

Thank you Dave, I greatly appreciate your quick response. I need to do further research of course on things like what type of properties I can purchase on a potential 1031 etc.. Do you have a good resource page I could go to in order to further understand this?

Dave Foster · Answer

@Brad Cashflow, Any type of investment real estate can be exchanged for any other type of real estate as long as you intend to use it for investment. Residential to commercial, raw land to industrial, long term to short term residential. As long as it is investment real estate it works.

We've connected and my contact info has further resources and videos for you.

Ryan Beatty · Answer

It's all about what your goals are. If you're looking for cash flow than 1031 exchanging into a cash flowing property is definitely the way to go. I can only speak for myself, but I've helped a number of people 1031 into passive deals providing 1+% a month. So it'd be more like $2500/month or more. But if you're looking for a more hands on investment, particularly in CA, not sure what's realistic.

Should I sell my Condo on 1031 or no??

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