Buying a short sale using 1031??

[David Campbell]

Morning fellow BPers,

Hope this Sunday treats you all great! Quick question, I am currently in the 45 day identification phase of purchasing properties using the 1031. One property I am interested in is a short sale. Are short sales unable to be purchased using 1031? Or am I good? Thanks! @Dave Foster I would have PM'd you this question but I feel like I bother too much already about 1031 haha

[Ari Bauer]

It's possible to buy a short sale with a 1031.

A problem that you may run into is if the bank dosen't approve the sale prior to your 180 days being up, you won't be able to close and the 1031 will fall through.

Therefore, you should have a backup plan in case the short sale doesn't get approved fast enough.