All Forum Posts by: Andrew Farrell

Hi Jake,

I know this is a day late but you can just show up and pay on the spot. That's the meeting I attend, highly recommended.

Quote from @Chris Webb:

Has this home always been a rental? If you lived in it for 2 out of the last 5 years, a 1031 is not needed. Talk to a CPA for clarification. Also, have you been looking for MF at this time? I would start contacting owners to try to get something penciled out now, then get your funding squared away using this property later. @Dave Foster has an excellent idea where you could essentially rent it to them for a few months while you find a replacement property. 

I haven't lived in the place 2 of the last 5 years so I think a 1031 is what I'll need.  But yes the second I knew a potential offer was on the table I started hunting but it's only been a few days.  There isn't much listed on the MLS so I'm pulling together a list of owners to try and find something off market.

@Dave Foster this is really helpful. I hadn’t thought about terms that could allow me to look for a property prior to execution.

I currently have a moderately profitable 3 bed/2 bath long term SFR that I plan on converting to an STR or an MTR... most likely an MTR as this is right next to a major hospital system with a lot of travel nursing demand. I informed my tenants that I would be unable to renew the lease ending in June but they are motivated to stay and unexpectedly made a good offer to buy the house.

At this point, I'm not sure which direction would be best. I could use a 1031 and roll into a small MF in a similar neighborhood that would be more efficient for the MTR strategy.  Typically, I see single or couple travelers that prefer a private one or two bedroom unit or if it's a shared unit/house they typically request a private bathroom. With my current 3/2, I could rent out only two rooms at a time to allow for private bathrooms and still be much more profitable then I am today with the long term tenants. However, a MF with 2-4 units at 2 bed/1 bath each, I could maximize my revenue per room/unit and be much more efficient.

I feel like I'm in a unique situation where I have motivated buyers with a good offer already in place which would allow me to avoid all of the work required to traditionally list the property, while also entering into a market with more buyer leverage once I sell the property. My concern however is that I haven't identified a replacement property and I worry I won't be able to complete a transaction in the required 180 days because of the low inventory and my specific deal criteria.

I welcome any and all thoughts on this one.

Thanks,

Andy