1031 exchange 300k

[Robert Guarino]

Hi I’m selling my business and house in ma and moving to Lexington sc in 2025. When I sell my business I will have 300k to invest puss 300-400k left over after I buy my residential house. I plan on building up a real estate portfolio. My question is what’s the best way to spend my 1031 of 300k do I buy a 2 or 3 family put right ?. We plan on buying in Columbia sc and im thinking of buying property near the hospitals and college and renting to collage studies and short turn nurse rental. What are some suggestions. thank you Rob 

[Bill B.]

You’ll need an expert like @Dave Foster in rewards to doing a 1031 for your business. I BELIEVE you can only exchange the real estate portion of your business. If it turns out all the value of your business is in its real estate you can certainly do that. Your 1031 will have to be for the net selling price, not just the amount you clear after paying off any debt. 

I don’t know your living situation or if there are any nice 2-4 unit buildings in the area you’re moving to. But you could use the 1031 to buy the rental portion of the building and move in to another unit as your primary. This would give you better financing options. You could still move out in a year if you don’t like the setup.