Can you do a 1031 exchange from one property type to another?

Question

If you have a SFR for example but want to invest in a large MF next, can you cash out and reinvest with 1031 exchange or must it be the same type of property?

Natalie Kolodij · Answer

All property is the same kind to the IRS.

Sell a house buy apartments.

Sell apartments buy a 3 houses, a trailer park, and a condo.

All gravy.

Michael Skoczylas · Answer

Yes. The IRS is very liberal on like-kind when it comes to Real Property. The only thing to watch out for @Natalie Kolodij is that foreign real property is not like-kind to US real property. However, Foreign real property is like-kind to other foreign real property. So an apartment in Germany is like-kind to a strip mall in Paris, but not to an apartment in Miami, FL.

Chris Mason · Answer

I'm not a 1031 expert,  but I have seen people 1031 a SF Bay Area SFR into a midwest strip mall.... so I'm going to go with "yes," with the added "consult an expert in this field and give them a few hundred dollars for the answer" disclaimer.

Natalie Kolodij · Answer

I'm aware.

The post didn't mention any thing about foreign investing in any way so I didn't assume that to be applicable to the question.

Ashley Pimsner · Answer

@Ben Feder yes you can.

I recently did a 1031 from condo to small apartment building.

A few things to consider, make sure Title from relinquished SFH And Title into MF is "like kind" otherwise you invalidate the 1031 exchange.

Secondly make sure you use a good qualified intermediary.

I used Exeter and was happy with their service.

http://www.exeter1031.com/hold...

@Lauren Speidel

Happy hunting.

Ben Feder · Answer

@Chris Mason thanks. Note taken except for the "pay hundreds of dollars" part. Lol. I have a book that talks about it actually I just wanted to posit the question to BP so maybe others can benefit from the answer. I will check my book as soon as I can.

Can you do a 1031 exchange from one property type to another?

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