From 1 SFR to Multiple through the 1031

[Jordan Coughenour]

I have a SFR property in Denver that I have rehabed and has been a great rental for the past few years. At the end of the month, I am netting $700 in cash flow. I also have an SFR property in Kansas City that is netting me $500 cashflow at the end of the month. Ideally, I would like to sell my Denver residence and use my equity ($180k about) to purchase multiple KC homes. However, my hesitation is being able to identify and purchase several more SFRs in KC within the 180 day time window to take advantage of the 1031 exchange, and avoid paying a capital gains tax.

Is there something I can do here that I may have not thought of? Thanks.

[Lee Ripma]

Well I'm not expert (I've never done this) however here are some things that I can think of:

1. Only buy one MF home in KC and get it under contract before you sell in Denver

2. Buy a package of SF, again get it under contact first

3. Sell in Denver first and buy props retails off the MLS, should be easy to close within your timeframe

4. Just do a cash out refi on your place in Denver and use the equity to take your time buying more SFH in KC, then no rush!

Maybe you got some value from those ideas! Good luck!