Selling & Buying with 1031

[Sam Liu]

I completed a 1031 exchange two years ago, but found the strict time limits made it difficult to find a good deal. It often feels like either selling high and buying high, or selling low and buying low. I sold one property just before interest rates went up, which worked out well for the sale price. However, I had to pay a premium for the exchange property because the market was so hot at the time. Now, property values have dropped—almost to the point where the capital gain tax I avoided through the exchange is offset by the decreased value.

Has anyone found an effective 1031 exchange strategy that allows you to take advantage of the tax benefits while still buying the replacement property at a good price?"