What sort of property should I look for if I want to do a 1031 exchange?

[Tyler Weston]

I am interested in doing a 1031 exchange. What would be the best course of action for purchasing a new property? Should I go for LTR? Multi? Are there any other options I should look at? I want to start my BRRRR and this cash I could receive after selling could help with my capital. Is there anyone out there who would be willing to have a conversation with me about this and a few other ideas that I have?

[John Morgan]

@Tyler Weston

I'm a fan of SFR. Less turnovers, less tenant drama and better appreciation. I did a 1031 exchange on my second rental property 5 years ago. It was only netting me $300/month and I sold it for 96k to buy another SFR. Since then, I did a cash out refi on the new house I bought from the 1031 exchange and the bank gave me 133k to play with after all expenses on my cash out refi. I bought 3 more SFR with the cash. So from that one 1031 exchange, I now have 4 SFR that cash flow $3200/month net. So my cash flow went from $300/month to $3200/month after doing a 1031 exchange to a bigger SFR. Good luck!