1031 exchanges and ideas

[Jesse Snell]

Posted earlier and completely messed up the term I was inquiring about...I meant a 1031 exchange instead I referenced a tax form 5498. Anywho, I own a condo in Boston and due to taxes because it’s no longer a primary residence it’s eating majority of my cashflow. That said I think it’s more advantageous to sell and invest in another property where I can get cash flow now vs waiting on appreciation and cash flow down the road.

Here are some details:

Unit rents out at 2600 a month which leaves me with a new net of 150 a month. The resident tax exemption rule/tax now eats up 700 of my cashflow each month. Took a year or two for Boston to catch on and increase the property taxes.

Equity is around 200k give or take depending on what I sell it for and realtor fees taken out.

I’m thinking about buying a vacation home and would have 25% from the sale to put down and subsidize the mortgage by possibly doing summer vacation rentals. My question is can I do a 1031 exchange on a investment property? Also I’m curious to hear about what others would do if they had 200k to invest, I’m also thinking about buying another multi family with it but personally I wouldn’t be able to enjoy the home like I would with a vacation home. My 3rd option would be to take the Dave Ramsey approach and put the money down on my primary (multi family) and knock of 14 years of the mortgage. Appreciate the input, thanks