1031 Exchange Multi-Family Opportunities

[Gerald Maczuga]

Hello BP,

I am currently looking at getting into multi-family units (2+ units). I currently own 3 SFR's and am under contract with selling one here in Boise, ID. I will have approx. $365K to put toward my next investment through a 1031 exchange. I have until September to identify based on my closing date. Current market here is still pretty hot and costly. Typically prefer class B areas.

I like the idea of staying local but am open to out of state areas as well. Looking to maximize monthly cash-flow with the intent to buy and hold. Looking for opportunities you may have or some pointers on areas that may be worth looking into. Thanks!

[Dave Foster]

@Gerald Maczuga, I apppreciate @Bill B.'s shout out. Just guessing that the $365 is your net cash after sale.  Don't forget that you also have to purchase at least as much replacement real estate as your net sale.  But you can allocate those proceeds any way you want as you're looking for deal structure.  You could purchasae one for cash and use the rest of the cash as a down payment on another.  This would leave you with a free and clear property with plenty of equity to tap if you find another good replacement in the future.  this type of approach hedges lending risk and allows you to shop at leisure for the next property without the stress of the 1031 timelines - as long as you use all of the cash in your purchases and purchase at least as much as your net sale.