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Updated almost 3 years ago,
How to 1031 Duplex to Larger Multifamily
Hey guys, I have a question regarding the 1031 exchange strategy. Been studying multifamily commercial RE and would like to start investing there. I have no track record even in SFHs or Small multifamily. Would it be possible to buy a duplex/tri/quad as an investment property rent it out and in a years time 1031 into a small to medium (5-20 unit) multifamily property?
1. Am I allowed make the exchange from duplex to say a 12-unit multifamily property?
2. If I were to aquire multiple properties could I then bundle a small portfolio of duplex/triplex/quad into one 1031 exchange to maximize capital and therefore aquire a larger exchange property?
3. What hurdles might I anticipate when seeking commercial financing on a larger 1031 exchange with only smaller residential lending/properties experience?
Thanks for your time guys and enjoy the Super Bowl!
David