Buy and Hold or 1031 Exchange

[Jake Hughes]

My initial goal was to long term buy and hold but am thinking holding properties long enough so I do not get the capital gains tax and selling then 1031 exchanging to getting more properties or more expensive properties. 

What are your thoughts?

[Jonathan Greene]

1031 exchange sounds good in theory, but you need to do it in an area and at a time where there is inventory to choose from because once you identify the three properties, you have to close on one of them which is very difficult in a competitive environment. A lot of people who earmark for 1031 end up buying a property they never would have bought if the timeframe wasn't running. With that said, if you do it right, it's a recurring snowball that gets bigger and bigger.