1031 Exchange Questions

[Emmett Gorman]

Hello All,

I am not currently in the real estate market (have 1 semester of college remaining) but am trying to do as much research as I can now so that I can hit the ground running once I graduate.

I read "Wealth Preservation Strategy: The Anatomy of a 1031 Exchange" by Joe Cronin and have a question:

1. He mentions how there is no set length a property must be held for in order to qualify for a 1031 Exchange as long as the intention of the property is for investment purposes. So say I have a history of buy and holding rental properties as investments, if I were to purchase a property, rehab the property, and put it on the market and it sells in a short amount of time (lets say less than a year) sell would it qualify? The process would be similar to a fix and flip, but if the property did not sell it would be used as investment rental property until it sold. Obviously with the money from the sale of the property, it would be reinvested into a property of equal or greater value.

Any help of this scenario would be much appreciated.

Thank You All