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Rick Klopp
Pro Member
  • North GA
11
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38
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1030 Exchange vs LOC payment

Rick Klopp
Pro Member
  • North GA
Posted Aug 9 2019, 07:40

Considering two options for an upcoming sale. Back story - I made a purchase of a SFR back in February for $5,500 (not a typo) that required significant renovation. I put it back on the market for $17,500 and just received an offer for $13,500 and accepted it. It's in an appreciating market and all I did was hang a "No Trespassing" sign and cut the grass once. Back to my two options - [1] conduct a 1031 exchange (not a huge amount and there are fees but every dollar counts) or [2] use the proceeds to pay down an existing Line of Credit running at 7%. I've ran the numbers several times and have come to a reasonable conclusion - just wanted to get some other insight. Thanks.

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