accounting help, first 1031 exchange, problems with financing
hello BP!
I am selling 2 of my rental properties in Indiana and now in escrow, it seems we will be closing on time. My question is: I was planning to do a 1031 exchange and found a condo in San diego and got our offer accepted. Everything was going as planned, however the HOA for the condo is only 41% owner occupied and 59% rentals. Our lender is giving us a hard time financing since they require 51% or more to be owner occupied. I guess this is known for rental property and HOAs. I now have to apply for an exception to Fannie Mae. Has anyone encountered this? Do you have any advice for a situation like this? How was your outcome?
It will cost us $200 Application to fannie mae, appraisal, inspection and HOA Certificate fee. And then we will have a response on the approval of the loan.
I am thinking of cancelling the 1031 exchange and just getting taxed on our capital gains.. Does anyone know how that would turn out? How much I would get taxed? I have only held the property for only 6 months.
ANY ADVICE, TIPS WOULD GREATLYY BE APPRECIATED :)