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Multi-Family and Apartment Investing

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Tammy Skeath
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89
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1031 exchange of greater value into multifamily

Tammy Skeath
Posted Oct 19 2019, 07:36

Hello BP members,

We are in the middle of a 1031 exchange. We sold a property in FL for 440k. What we have in the exchange after escrow is 379k.

We are looking at a multifamily property in another state for 1.6 million. My question is will we run into any issues since the exchange is so much greater than the initial sale? We will use the exchange amount for the deposit and then add any additional funds to get the full down payment for the financing. I thought I had heard somewhere the exchange property couldn’t be more than 1.5x the value of the first property. If so, what happens if it is greater? I’m in the 45 day window for the exchange currently. Thanks for your help!!!

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