Updated almost 3 years ago on . Most recent reply
1031 exchange (Can we turn long term rental into short term)
Hello, I recently sold our long term rental property in Los Angeles and then purchased another property in North Carolina through a 1031 exchange. Am i able to turn the new property into an Airbnb/VRBO without being penalized? After the closing we rented the property for about 7 months, now we want to explore short term vacation rental options but still want to follow all the rules within the exchange. Is this possible and are there any rules we need to be aware of?
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- Qualified Intermediary for 1031 Exchanges
- St. Petersburg, FL
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@Keith Gilad, A resounding "no problem" from all! If you were looking to immediately sell or use it extensively for personal use, or if you wanted to convert it to your primary residence you'd want to be careful of some things. But as long as you're using it investment it's not going to impact your 1031 at all.
- Dave Foster
