Should I use a 1031 to get into MF?

[Caleb Rowe]

Hey everyone,

I own a couple of properties in the Phoenix, AZ area and I am thinking about selling one of them and using a 1031 to get into some mid-large multifamily in Western NY where I own a couple of properties as well. My ROI is pretty good on the unit but since the value has skyrocketed in the past 2 years my ROE is looking pretty rough. Property is cash flowing nicely and I have good tenants in place but with my equity in the house I could be buying some 8+ unit MF.

Thoughts?

[Dave Foster]

@Caleb Rowe, I'll put you and @Evan Polaski's mind at ease on this one.  All. parties do have to be notified when one is doing a 1031 exchange.  But there is no specific requirement on when that happens.  So, most of our clients will let the 1031 stay anonymous and simply make the contract assignable.  This prevents anyone trying to take advantage of you for your 1031 status.  We then provide all the necessary documents as part of the closing.