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Updated over 6 years ago,

User Stats

26
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5
Votes
Bryan Findlay
5
Votes |
26
Posts

Moving CA to IDAHO w/profit! Do we 1031 EXCHG our rental as well?

Bryan Findlay
Posted

I apologize now for the confusion and I know there is "what ifs"  and  "it depends", but looking  looking for input involving "my" situation and leaning towards a 1031 exchange.

My situation: I own one rental home in California and my cash flow is approximately $550 monthly. I purchased the home 10 years ago $185,000. It's now worth approximately $310,000. Home is only 2 bedrooms, but needs updating and the condition is relatively fair to good. Regarding the 1031 exchange my choices "given my situation" moving to Idaho?.

We are moving from California and will be relocating for good in Meridian or Kuna Idaho (within the next 6-8 months). The money from the 1031 exchange property in California seems it would allow us to make some big decisions, and one important factor (for us) is the instant monthly cash flow (yes future is important also). Do we take the full amount from the rental and put it into 1 rental property in Idaho? We could have a new rental home in Idaho for $300,000 like a 3-4 bedroom home. Or do I use this situation and split it amongst a few rental properties per the rules of 1031. My fear with distributing the monies into several rentals  is knowing the mortgage will be higher monthly payment.  Should I even do the 1031 exchange on Cali property since the cash flow is good?

To make matters more complicated, our primary home in California we will also be selling and will profit approx $220,000. I want to keep our mortgage payment cheap as possible in Idaho and again, do I pour that full $250k amount into a new primary home in Idaho which will allow for a very low mortgage (looking to buy a home primary residence around $320,000). Or maybe dump like $150K into our new home and use the remaining to pick up another rental property or two? I apologize if my question is difficult to understand and I would appreciate any open minded thoughts.  Thank you in advance.  

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