1031 exchange SFH to Multifamily, or leverage equity?
In the recent BP podcast EP 250, Grant Cardone responded to Brandon's fire round "1031 exchange" question with a cryptic response. GC mentioned something about 'the six months being the important part' with a cheeky, wink wink demenor. What did he mean?.
I am transitioning out of the single family home I have rented out. this very well be my ticket to entering the multi family market. That is, unless holding it and leveraging the equity is a better idea. I don't know if I should go to the banks now with a loan application to obtain funding for a multifamily now, I have rented it for over two years, so I might be able to show rents as revenue with Fanny Mae for debt to income ratio purposes.
This sfh is worth about 125k more than what I owe on it that’s:
- Out of my area
- Rented until April 1
- Break even after capital expenditures
I was thinking about buying a multi family on a 1031, but I don't want the 45 day rush.
I would like to have the multifamily deal in place prior to closing on the sfh
I’m looking to locate and control the multi family property in my area prior to closing on the sfh to avoid the 1031s 45 day rush
What are the best ways to move forward? Thanks for any dialogue