Can you flip a house, do a 1031 and roll the money into a rental unit?

[Casey Stuebs]

I have read a lot about a 1031 talking about like properties. Well a flip and a rental are both investments but one would be a SFR and one would be a multi-unit rental. Is this possible?

Thanks!

[Dave Foster]

@Vik P., The key to the first part of your questions will be in the use of the condo you are selling.  If that is a condo that you have been holding for investment use (meaning not your primary and not a fix n flip) then yes you can perform a 1031 exchange on it.  

The second part is does a STR qualify as a replacement for an investment condo. The answer is yes. Any type of real estate you have purchased with the intent of holding for productive use can be exchanged for any other type of investment real estate you also intend to hold for productive use. So a LTR for a STR is fine. So is commercial to residential or raw land to Multi-family. It is the use not the type of land that qualifies it.