Updated over 4 years ago on . Most recent reply
FHA loan to 1031 exchange ?
Good afternoon bigger pockets!
I currently have a SFR with an FHA loan.
What are the steps I need to make to turn make it eligible for a 1031 exchange?
Do I have to refinance? Get more equity? Solid credit score?
I tried finding answers on google but can’t find anything.
Anything helps thank you!!
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#1 Foreclosures Contributor
- Real Estate Professional
- West Palm Beach, FL
@Account Closed
If the house with the fha loan is your primary residence for at least 2 years (you can move out and rent it for up to 3 years) the gain is tax free (up to $250k, $500k married)irs section 121....no need to 1031.
You Can rent it out for at least a year, then 1031, but why....1031 simply defers the taxes, it doesn’t eliminate them.
As @Bill Exeter mentioned, the type of loan makes no difference in either case v