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Updated almost 10 years ago on . Most recent reply

User Stats

208
Posts
47
Votes
Leo B.
  • Investor
  • Hercules, CA
47
Votes |
208
Posts

1031 exchange to purchase a fix and flip

Leo B.
  • Investor
  • Hercules, CA
Posted

Hello all-

Would I be able to purchase a fix and flip project with 1031 proceeds? Below is just an example of a scenario.

Original purchase price of rental home is $425K

$400K loan balance

$500K sale

$15K closing costs

$85K net proceeds

Would I be able to use the $85K to 1031 exchange and purchase a fixer for $415K and needs $85K of work and still defer taxes?

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