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Updated 10 months ago on . Most recent reply
1031 selling single family home to buy portion of mulit-unit owned by nonprofit
Hello, BP community- I posted these questions four years ago and got some good advice, but I never acted on it. Now the scenario is a little different- I welcome any suggestions and advice. My father used to own a 4-unit rental property in a location near a college campus for 20 years. It is all paid off. He vested the property over the last 14 years. He also generously vested to his two children and a nonprofit he founded. (He has not taken a salary from the nonprofit in 20 years- but the proceeds go to a cause he cares deeply about) Currently, my sibling and I own 40% of the building, and the nonprofit owns 60%. I am grateful. I also don't know how long-term capital decisions will be made when the majority is essentially owned by a board of directors once my dad passes away. It is managed by a company. He is in his mid-80s. I am considering selling a single-family rental in DC and/or looking for a new commercial loan to purchase the building as much as I (or we if my brother decides t partner with me) can to be a majority owner. My brother may also be interested in purchasing a portion from the nonprofit. What would the first steps be? Can I sell a single-family rental and do a 1030 exchange for a multi-unit? Does the fact that a portion of the multi-unit is owned by me and a nonprofit matter? If I don't sell the rental, what kind of lenders offer loans so I can buy back the other portion that was gifted to the nonprofit? We agree that partially owning this asset may not lead to wise management and decision-making over time. Thank you! (especially for making it through this long post)