Options Besides A Direct Property Purchase

[Jonathan Moonen]

Hello,

We are considering selling our investment properties. We'd like to minimize or delay capital gains as much as possible. I've been reading about 1031 exchanges, and it seems like there's some options like property improvements. We don't want to (and can't) purchase an entirely new house with interest rates at current levels - is there any way 1031 funds can be used to funnel back into our other investment properties that we are not selling? Like, say, a refinance? Or even just directly paying off the loans on our other properties - all of which are under the same business entity. Really we're open to any possible options to avoid capital gains (at least for now) BESIDES moving into the house for two years and BESIDES buying a whole new property.

Thanks,

Jonathan

[Whitney Nash]

Hello @Jonathan Moonen,

DSTs, as previously stated, are often a good alternative to 1031'ing into something other than physical property. 1031'ing into oil and gas mineral rights could also be an option if they are "1031 friendly". There are certain net worth requirements and minimum investment amounts that you'll want to ask about when looking at different DST and O&G companies and offerings.

You may also want to look into purchasing vacant land as replacement property as well since price points can be less than a house depending on size and location.