Sold a property and doing a 1031 exchange
We sold our property in Gainesville Ga and we are looking to do a 1031 exchange for the next one. Sold at 170k so we need to stay in that price or higher, we wanted to buy two rentals may be do a brrrr and one turn key in an area that we can afford, house needs to be less than 100k. We know we can’t find anything in Gainesville or Gwinnett county for those prices so which areas are good for rentals around Atlanta? I was thinking maybe an upcoming neighborhood in the west side since is still cheap (saw a couple in grove park) May be some areas of Decatur? Lithonia? Conyers? Should we stick to the 1% rule? Any recommendations???? thanks.
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- Real Estate Broker
- Tampa Bay/St Petersburg, FL
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I may be misreading it, but your post makes it sound like you already closed on the sale, received the proceeds, and now are thinking about doing a 1031 Exchange. So I just wanted to clarify in case anyone else misreads it as well:
If you had the 1031 lined up ahead of time and a Qualified Intermediary is holding your funds, then you're good to go. Just be mindful of the 45 and 180 day rules with regards to identifying and closing on your next properties.
But if you did not use a QI, and already closed on the sale, then it's too late to do a 1031 Exchange. You need a Qualified Intermediary in place prior to closing the first sale, and the QI must hold the funds. You't can't decide after the fact to do a 1031.
Happy to PM you, or anyone else, some additional info if needed.
- Jeff Copeland
