In need of some advice

[Tanisha B.]

So I currently have a few properties that I’m considering to sell and turn over into a 1031 exchange. Should I sell or hold these properties? We are currently trying to come up with a good strategy to get a head. 1. GA property value at $158k- rented for $1200. Owe $97k. to the bank. 2. MD property value at $125k- rented for $1300. Owe $67K. to the bank. 3. GA property value $106k- rented for $925. Owe $51k. The plan is to sell these properties and reinvest in C class neighborhoods buying at 45k-55K. paying off the bank and freeing up credit. THE EXPECTED RENT FOR THE NEW PROPERTIES WOULD BE $700-$850. What are your thoughts? Thanks in advance.

[Paul NA]

I think its a huge challenge as you have only so much time per 1031 rules...it seems like you'll have to find 2 to 3 $50k properties to properly achieve a 1031 exchange.  Otherwise its a wasted effort.  I recently did a 1031, sold one and had to buy 2...only problem was every time I found a property, I was getting outbid.  Then I finally settled on something, just to complete the exchange.