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Updated over 1 year ago,
Using proceeds from a 1031 to buy mixed use property
So we had a piece of property that’s currently under contract to be sold. We are doing a 1031 exchange since we bought it for $70,000 and sold it for $260,000. I’m really confused about the mixed use 1031, I see a lot about people selling mixed use properties and using the 1031 but not the buying of mixed use such as a farm/ bed&breakfast using proceeds from the 1031.
I’m looking at property that’s about $900,000 that has about 60 acres, a home, a barn, a shop, etc.
I would like to buy it using the 1031 funds, and do a bed and breakfast in the house or just live in the house and convert the barn into a wedding venue, which would be an “investment property”.
Would that scenario qualify for the 1031 exchange mixed use?