1031 exchange or pay off personal debt

[Andrew Samples]

I am putting my only rental home I have right now up for sell after doing some needed repairs to it. I was wondering, based on some of your own personal experiences, if I should 1031 this over into another property after it sells or go ahead and take the money and pay off some other personal debt I have. I see some of the advantages to both sides, but don't know which will work better in the long run. Thanks.

[Greg Scott]

If you are an educated investor, you should be able to get returns of 20% or so in single family real estate.  So, if the interest on your personal debt has a higher rate than that, I would consider paying the debt.  if it is lower, I would stay invested in real estate.

I'm assuming you are looking into a 1031 because you have some appreciation.  In that case, you have a third choice.   Sell the property then pay off your debts.  With what is left over, buy another rent property.