1031 exchange into several different properties?

[Peggy Tibbs]

Can I use my 1031 exchange money to invest in several other properties as long as the total amount I invest equals the net amount I exchanged? In other words, can I buy more than one property with the exchange money?

[Mark Creason]

yes, as long as you are selling investment real estate to buy investment real estate.  You could sell one house and buy multiple homes if you want.  You also will need to put all the equity back in.  

[Dave Foster]

@Peggy Tibbs, you bet.  Like @Mark Creason said, You can either add your own cash to the deal or you can take out additional debt - either way.  In order to defer all tax you must purchase at least as much as you sell and use all of the proceeds.  As long as you do that the sky's the limit.  You can sell one and buy several.  You can sell several and buy one larger.

And technically you can take cash out and purchase less than what you sold.  You'll pay tax on the difference but shelter the rest in the 1031.