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Updated over 3 years ago,
1031 Exchange - Personal Use Definition
Hello,
My wife I are in the process of buying a property through a 1031 Exchange. This is an investment property in the mountains near Breckenridge, CO. We intend to use the property as a short-term rental (AirBNB/VRBO). Before we can lease the property it needs some structural repair and rehab work. We expect that the repairs will take about 1 month to complete. We do not currently live in Colorado so we are considering staying at the property during the repairs to manage the process. However, I know that 1031 Exchange procedure has very strict rules about personal use of the property. Would it be considered personal use if we were to stay at the property, before we lease it, in order to manage the repair/rehab process for about 1 month? This would not be a leisurely vacation. We would be staying there for the sole purpose of preparing the property to rent out via short-term rental services. Any advice or information would be appreciated! Thank you!
-Brady