1031 exchange question

[James Defazio]

so I want to do my first 1031 exchange. I have a 2 bedroom SFH that I have paid off and is worth between 92-105k. It is only making me about $625 a month after taxes and insurance. So it's a very low performing investment for the amount of capital I have tied up in it. It is currently rented until the end of May and the tenants that live there now would like to buy it but say they probably have 2 more months before they will be able to secure financing. The problem is I found the property that I want to exchange it for. It has been on the market for about a month now and is a 7 plex in a great area that cash flows about 2 grand after taxes insurance prop management and debt service and that would be on a commercial loan at 20 years. I don't want to lose out on this property but i can't sell the other property yet obviously. Not sure how 1031 exchange works was hoping to get some advice from people that are more familiar with the process. Thanks!

[Wayne Brooks]

Yes, you can do that.....or you can do a reverse 1031 where you buy the replacement property first.  More expensive than a regular 1031, but it can be done.

@Bill Exeter can explain