Exchange Rules Purchase Home in Development Only Models Built

[Dan Cox]

Hi, I have a single family rental home. It is almost ready to sell..rehab after tenant moved out.

I would like to purchase a new home as a rental in a new development using the 1031 exchange process.

I have done 1031 in past but the homes were already established.

The new homes are being built, models are open.

If I placed the net proceeds with an exchange company, and named the property..new home being built as the replacement..if the home was completed within the 180 days from naming, would that qualify as an approved 1031 exchange?

If so, can some of the net sales proceeds be held with the exchanger for improvements..backyard for example? Putting less down on new loan, reserving some for the improvement?

Does the 180 days start from the replacement naming? So in effect you could have 45 days plus the 180?

Can I draw on the current rental for sale Heloc, prior to sale and use for new home deposit? If so does those funds go through exchange intermediary as sales proceeds will.

Thanks for the help..making sense for me.

I appreciate your time.

dan

Sent from my iPhone