1031 - NY to FL. Receiving mixed messages re: SFR v MF

1031 - NY to FL. Receiving mixed messages re: SFR v MF

Member since 2019 · 8 posts · 1 vote

Lurker/1st time poster here! 

My husband and I own 3 homes: 2 rental duplexes and 1 single home in which we live in. We are looking to relocate to central Florida this year and want to sell one of the rental duplexes. Upon doing research and speaking with "experts", we are getting different info. We don't know if we should go the SF route or the MF route. We'd love to duplicate our current situation where one unit pays the mortgage and the second unit is ours free and clear. It seems that MF in Fl are not that common and the ones we've see are not in the greatest shape. We want this process to go as smoothly as possible however matters are complicated by the fact that we're not there. My husband will be visiting next month for a weekend to view properties so my questions are: 

Considering it's Fl, should we look at MF or SF? And/or multiple SF? Which is what has been recommended. 

How long can the list of properties be within the 45 days? Can the list be amended within the 45 days? 

We just got the pre-qual letter, is there any other documentation we should obtain? What would the next step be? 

Sorry for my ignorance, we're really new at this and are trying to do this in the most efficient and cost saving way possible. Thanks! 

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Rental Property Investor · Baltimore, MD · Member since 2019 · 58 posts · 24 votes
7y

I believe, in most areas, you are able to put 3 potential properties on this list within the 45 day period. These are all questions that a qualified accountant or tax professional should be able to help assist you with. Hopefully they can give you more detailed answers.

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  • Rental Property Investor · The Vampire State · Member since 2013 · 2k+ posts · 2k+ votes
    7y

    @Brenda Mercado Baez

    I'm not sure if you're aware, but you've posted in the Landlording forums.

    Perhaps if you posted in the Real Estate Investing forum, more people with that skill set might see it and be able to help.

  • Member since 2019 · 8 posts · 1 vote
    7y

    Thanks for the heads up! I will remove and repost. 

  • Real Estate Professional · West Palm Beach, FL · Member since 2012 · 23k+ posts · 13k+ votes
    7y

    @Brenda Mercado Baez Yes, there limits to how many properties you can name...the 45 days is when the list becomes “hard”.

    You’ll have to have a QI anyway, @Dave Foster is a QI in FL who can answer all your questions.

  • Rental Property Investor · Baltimore, MD · Member since 2019 · 58 posts · 24 votes
    7y

    I believe, in most areas, you are able to put 3 potential properties on this list within the 45 day period. These are all questions that a qualified accountant or tax professional should be able to help assist you with. Hopefully they can give you more detailed answers.

  • Dave FosterBusiness Member
    Qualified Intermediary for 1031 Exchanges · St. Petersburg, FL · Member since 2013 · 9k+ posts · 9k+ votes
    7y

    Not quite @Trevor Scheiderer.  It's a federal statute so is the same nationwide.  If @Brenda Mercado Baez names three or fewer properties on her list then the value of them does not matter.  They could sell for $200K and put three $5 mil properties on their list (of course the caveat being they have to purchase one of them).  You can name more than three properties as long as the aggregate value of the 4 or more properties isn't more than 200% of the value of what you sold.  So, again, if Brenda sells for $200K then she could name 4 or more as long as their total value wasn't more than $400K.  Unless they actually purchase at least 95% of the value of the entire list (usually that will mean every property on the list).  

    If you're looking to replace about what your selling you probably want to keep your list to 3.  The best course is to shop decisively and quickly.  Get your replacement/replacements under contract during the 45 day period or before your old property closes and maybe even close on your replacements during the 45 day period.  That way your final list simply becomes the properties you actually purchased.

    Of all the rules the identification period causes the most angst.  But it can be managed.

    The 1031 Investor5140 Reviews
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