1031 Exchange Question

[Ali Hashemi]

Hi,

I'm closing on a portfolio of 4 duplexes. All four duplexes are under one LLC and a single commercial loan is servicing the portfolio. I'm considering rehabbing and selling one of the duplexes. My question is this:

If I sell 1 of the 4 duplexes can I 1031 exchange the $ from the sale back into the existing commercial loan? Or do I have to pay taxes on the sale of the duplex? My lender is ok with me splitting up the portfolio like this - so that's not an issue. My knowledge of 1031 exchanges is very limited.

Thank you

ALI