Where to reinvest 1031 exch funds?
Looking for ways to turn this into non taxable cash or just purchase something to avoid taxes.
I'm on my second 1031 exch but later found out that I can't use the funds to improve on already purchased land so I'm a little stuck finding something to purchase to avoid the hit on taxes and at the same time assist with the build if possible. I could purchase a condo and pull cash out using a HELOC?
If there's nothing one can do, would you just buy more land in cash to build on later or a small shack in the mountains for a 2 ADU Duplex build. Any advice?
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#5 House Hacking Contributor
- Investor
- CO
That would depend on my goals and strategy.
For me, its scaling up into the multi family. If there is nothing on market that will meet the timelines, then I look for SFR in good area for appreciation and that meet my return metrics.