Updated about 3 years ago on . Most recent reply
Which is better investment in these two scenarios
Hi All,
I have a question about which route is a better investment regarding 1031 exchange.
Background: One property purchased five years ago at $160K. Currently, the value is $260K and the current rent is $2,000/month.
Scenario 1: Keep the current rental property. No 1031 Exchange and No Cash-out Refi.
Scenario 2: Sell the current rental property at $260K and do a 1031 Exchange to buy a rental property at $260K (all cash, no finance). The rent for the new rental is $2,500/Month.
Assume all the carry-on expense for the new rental is $250 higher than the current rental property.
Which route you would like to proceed? and Why.