1031 Exchange Questions

[Esther Thomas]

Hi Everyone. My mom has a 4plex and I'm trying to run some scenarios on how to help her out. It might be too much (big maintenance headache) for her to manage in which case she would sell it.

If she sells the 4plex and buys 1 or more other investment properties, if the total is less than what she makes from selling the 4plex I'm assuming she'll have to pay capital gains on the difference?

Can she eventually take residence in one of the investment properties, if so does anyone know the rules around that, how soon can she take residence, does it first need to be occupied by a tenant, etc. 

Thanks so much.

[Steven Hamilton II]

You must use an intermediary. I recommend @Bill Exeter highly. She cannot reside in the property or at least she cannot 1031 that part for at least 1 year. I recommend 2 to be safe. Have you considered asisting her in the management or hiring a PM for her?