Qualifying for a 1031 exchange

3 Replies

Neophyte question about 1031- I have a "good " problem , I just bought an investment property,single family home to BRRRR. I just received an offer to purchase for twice what I paid. I haven't rehabbed or rented yet since I've only owned it for 2 weeks. Is it possible to 1031 exchange a property that I've owned for 2 weeks? This wasn't an intended flip. thanks for ant suggestions.KK.

@James Kendall , as my grandpa used to say "I'd rather be lucky than good"!!! congrats on making a great purchase. In order to do a 1031 you must have purchased the property with the intent of holding for investment use. The BRRR method assumes that is exactly what you would be doing. And an unsolicited offer to purchase is considered the gold standard for establishing your intent - "I wasn't going to sell but this person made me an offer I couldn't refuse".

There is no statutory holding period.  But while most folks feel comfortable with a year, your circumstances are pretty strong to allow you to do it.