Out of state Investing
Hi All,
I am from NYC/Long Island area. My parents currently own a co-op in Queens which I would like to sell, for around 200,000+ (based on previous sales). They want to sell this co-op to me. I have other ideas however: I would take the 200,000 and buy 1b/1ba and/or 2b/2ba units in another state (say North Carolina or Florida). My parents are currently netting $700/month for their co-op - my thinking is to buy 3-5 cheaper units (between 40-60K) in other states for the full amount (no mortgage). The net cash flow would be considerably higher, and you'd have multiple units instead of just one.
My question would be concerning the tax implications if I transfer the proceeds from the sale of my parents co-op in NYC, to multiple condo/co-op units in another state - will we be taxed or would this somehow qualify for a 1031 exchange??
Additional questions - where are there reasonably priced condos/co-ops that would provide decent cash flow? (I have been looking in Charlotte, and also Boynton Beach, Florida, but am open to anywhere).
Additional caveats - I have no steady income (apart from $1600/mo Unemployment) as I just left my professor position after two years, but I do have a large amount of savings (around 50K). My credit score is perfect, and I have no debt along with minimal expenses.
If all goes well - I also plan to take out a Home Equity loan on my parent's house, since it is also all paid off and worth roughly 7-800K.
Sincerely appreciate your time and help. Looking forward to discussing more with you.
-Brian from Floral Park, NY