Departing Chicago 1031 Exchange to Another Market

Departing Chicago 1031 Exchange to Another Market

Chicago, IL · Member since 2016 · 23 posts · 14 votes

Hi all,

I'm a new poster to BP, but not a new investor. I have a small building in Chicago that I have the opportunity to take equity out via quick sale and move to another market. My basis for doing so is to leverage equity into larger property with a greater NOI. I'm finding Chicago to be increasingly difficult to stay in due to rising taxes and operational costs. My conundrum is being able to identify a market and property that fits my criteria within the constraints of the 1031. I've done some searching on Loopnet, but also have reservations as I hear from some that this is where investment properties "go to die". Anyone that could offer some brief advice on market identification and partnering with a broker that can assist with a national search (if they exist) would be greatly appreciated.

Kind regards,  Glenn Hoffman 

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  • Rental Property Investor · Everywhere, USA · Member since 2012 · 689 posts · 525 votes
    8y

    @Glenn Hoffman - this is a challenge now a days. I was nervous about finding replacement properties for a large sale I did back in the fall of 2016, and was able to pull it off at the 11th hour. I just finished a sale last week and have another one next week and opted to skip the 1031 because I wasn't finding any deals I liked.

    My thought would be to identify 3-5 target MSA you would be interested in investing in, then find some top folks in that area. I like working with local folks over national folks as I personally feel the local folks know the market better. Then start getting them to send you potential deals. See if you can drag your quick sale in Chicago out to a longer close period so you have time to look for replacement properties. 

  • Chicago, IL · Member since 2016 · 23 posts · 14 votes
    8y

    Hi Andrew,

    Thanks for your advice. This is great information. Time to scramble! Have a good evening and thanks again for your time. 

    Glenn

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