Tax Deferred Exchange Question

[Linda Bro]

Hello,

Does a 1031 exchange allow me to sell a rental and roll the profit into a property that has two houses on it (one to be a rental)? Or does it allow profit to be rolled over into a property that has one house on it, and then a second manufactured home is added after sale (as a rental)?

I have searched the internet and cannot find any answer.  I appreciate any responses. Thanks.

[Jeff B.]

1031 exchange is "like for like". I exchanged a SFR for an MFU 6units. Both were "income producing", which is the major criterion. Both are rentals, the nature thereof should not a problem. When you attempt to sell one, buy two, rent one and live in the other, then that's questionable. Your net rental values after the purchase must be greater that the sold value.

Check with your 1031 accommodater !