MHP Seller financing & 1031 exchange.
Hello,
I am looking into seller financing for purchasing a mobile home park, and I have a question I can't find the answer to.
What happens if I buy a mobile home park from a seller through seller financing. Let's say I do a value-add and five years later want to do a 1031 exchange into something bigger. We are assuming I am still paying the seller through the loan he/she gave me.
First of all, what happens to the seller who gave me seller financing? I want to make sure the seller who's been graceful and has taken a chance on me by providing me seller financing doesn't get punished down the line with taxes.
And secondly is it possible to do a 1031 exchange it if I want to roll into a bigger park, or even an apartment complex?
Thanks a lot on your input. Highly appreciated.