1031 Exchange - Flip House to Rental Property

[Willie Webb]

I know this may be a silly question for the experienced REI and CPA's; but is it possible to roll a 1031 exchange from a flip house to a rental property. I know that the investments from the 1031 exchange has to be of similar category. They both are considered as real estate investments; although the are completely different. Please don't be too harsh on my newbie REI brain. I look forward to your helpful feedback.

[Jon Klaus]

Can you make your flip into a rental? Later, after you've established intent to hold, you could 1031X. The key is showing intent and the more time you hold shows that (changed) intent. You might also hold in a different entity than you use for flipping.