1031 Rollover: Commercial or Small Multi-Family (1-4)

[Albert Hoffman]

Hello Everyone,

I’m scheduled to close on the sale of my single family rental the first week in May, and will have ~$250k in equity to roll-over into one or more replacement properties.

I’d really like to hear other member’s perspectives on the pros and cons of purchasing small multifamily (2-4 units) with 30 year fixed financing vs larger multifamily (5-20 units) or a mixed use property with a commercial loan, which would likely be a 15 year loan term with monthly payments based on a 25 year amortization of the debt.

This is my first 1031 Exchange, and I greatly appreciate your ideas, perspectives, or shared experiences.  Thank you!