13 units - 2 Buildings 1031 to SFRs

[Chris Jackson]

Hi all before I call my 1031 specialist figured I would see if the community has dealt with this scenario.

I am getting some silly offers on my 13 units. I am considering taking an offer but I refi'd earlier this year and if I take a sale I will get super hosed.  I really don't want to be in a 1031 situation and buy a bigger building right now and have to overpay.

I would like however to buy a bunch of SFRs with the profits, even put a mortgage on buying the bunch.  I can work out the particulars with banks financing the purchase of the singles.  That I am not worried about.

Also, I don't want to buy a pool of SFRs. I would if I had to but I have been successful at SFRs buying this year so I would like to buy a bunch in the 1031 window that I hand pick, even with same majority ownership on the individual SFR LLCs to adhere to 1031 rules of like-kind.

My main question is can I even do it?  Will the Govt get what I am trying to do and see that say 15 SFRs were purchased from the sale of the building?

Let me know your thoughts.

[Robert Hetsler]

@Dave Foster is correct.  In situations like this, when you speak to your QI or the QI you are interviewing, you need to ensure you go with someone that you immediately get the feeling that they are knowledgeable  and are very experienced in this field.  Your situation will require the intermediary to immediately identify several potential pitfalls that @Dave Foster already pointed out.  I always say, go with your gut because you will know after 5 min on the call whether the QI you are speaking with has the level of expierence to handle your exchange.  Always, always, always, go with your gut!