Skip to content
×
Pro Members Get
Full Access!
Get off the sidelines and take action in real estate investing with BiggerPockets Pro. Our comprehensive suite of tools and resources minimize mistakes, support informed decisions, and propel you to success.
Advanced networking features
Market and Deal Finder tools
Property analysis calculators
Landlord Command Center
ANNUAL Save 54%
$32.50 /mo
$390 billed annualy
MONTHLY
$69 /mo
billed monthly
7 day free trial. Cancel anytime
×
Take Your Forum Experience
to the Next Level
Create a free account and join over 3 million investors sharing
their journeys and helping each other succeed.
Use your real name
By signing up, you indicate that you agree to the BiggerPockets Terms & Conditions.
Already a member?  Login here
1031 Exchanges
All Forum Categories
Followed Discussions
Followed Categories
Followed People
Followed Locations
Market News & Data
General Info
Real Estate Strategies
Landlording & Rental Properties
Real Estate Professionals
Financial, Tax, & Legal
Real Estate Classifieds
Reviews & Feedback

Updated over 10 years ago on . Most recent reply presented by

User Stats

12
Posts
1
Votes
Ryan O.
  • Real Estate Investor
  • Alexandria, VA
1
Votes |
12
Posts

Use exchange to purchase other investment prop AND.....

Ryan O.
  • Real Estate Investor
  • Alexandria, VA
Posted

Hello,

I am currently looking to conduct a 1031 Exchange with an inv prop I own in Hawaii and I have a couple questions for the more experienced investors who have possibly been in this situation before.  Background:  I own two investment properties, one in Hawaii (owe approx $210K on mortgage) and one in Bronx, NY (owe approx $38K on mortgage). 

My proposed strategy:  If I utilize a 1031, I will have approx $215K for the exchange on the gaining property after paying off the mortgage.  My initial strategy for this was to find an income producing investment property for under $215K and then use the remaining (after having to painfully pay the cap gains) to payoff my Bronx property and/OR save for a down payment on an actual house for my growing family.  

Questions:  

1 - What would you do with that situation?

2 - Would you consider a VRBO for the gaining inv prop since you could be free and clear of a mortgage?

3 - Does anyone know if you can use the 1031 to pay off another inv prop (i.e. the Bronx Prop) ....since it's an inv prop, without having to pay cap gains (probably not but have to ask)?

Sorry for the drawn out post but I am really trying to maximize this opportunity in my favor.  I look forward to your comments and answers.  Thank you in advance!

Ryan

Loading replies...