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Updated almost 7 years ago,
Advice needed on 1031 exchange
Hello and thanks for taking the time to read and putt in your input in advice in advance.
Here is the situation, first off the rental property i will be using has about 125k in equity and cash flows around $610 a month. I will be doing a 1031 exchange on our rental property to increase our monthly cash flow. After talking with a group that specializes in these I found out i could do the exchange program and purchase multiple properties as long as I use up all the equity in the original sold property without paying a penalty. This mean I could buy 2 rentals properties and double or more my cash flow per month according to my findings. My questions are this, would it make more sense to purchase 2 separate properties assuming they cash flow at least $1300 combined? and now I have 2 SF or condo rentals working for me or purchase one larger duplex property that would cash flow the same $1300?
Now the cash flow numbers can and will be adjusted, this is not my main concern. My Main concern is weather 2 are better than 1? lol Please enlighten me on your professional advice and views that I cannot see. I have done some extensive searches in my area and this should not be difficult to accomplish. Maybe I am just overthinking this too much. My area in utah has had fantastic growth and looks like it will continue for some time to come. I strongly believe that house prices will continue to grow with the upcoming big business coming if this help any. Thank you and invest well -Andrew