Refinance v. 1031exchange and RE Investment Group in San Diego

[John Dunn]

Greetings all,

I have three properties that I refinanced back in August of 2012 so have pretty decent interest rates 3.8-4%. I have a condo in Boulder, CO with about $300K in equity that cash flows about $700/month, a duplex in Fort Collins with about $200K in equity that cash flows about $1000/month, and a SFH in Fort Collins with also about $200K in equity that cash flows about $500/month.

I've looked at a 1031 exchange with the SFH but one issue has emerged: in this market I have to offer a premium to a seller to consider the 1031 exchange and then may have to discount my property to get it sold. I'm also considering doing a cash out refi on one or more properties to generate some cash to buy another property, but hate the idea of giving up my low interest rates. A third thought I have is to just hang on to what I have and try to pay them off more quickly but again with the low interest rates that's not attractive either. Also, in terms of looking long term probably not the best ROI if I stay put.

Just wondered if anyone was facing or had faced a similar decision and what he/she did. 

Also, wondering if anyone out there is part of a real estate investment club/discussion group in the San Diego area. 

Thanks and Happy Valentine's Day!  John

[Dave Foster]

@John Dunn, Most people forget that what's sauce for the goose is also sauce for the gander.  

It is a seller's market and sellers will not usually give you the kind of concessions you want to work with  your 1031.  However you can get the same benefit using concessions with you as the seller.  Sell your properties contingent on finding a suitable replacement in a 1031.  Tons of buyers are looking right now and would not mind having their next property locked up in exchange for a little time.