Use 1031 Exchange or Hold onto Funds For Recession?

[Ethan Atkinson]

Should pay taxes or too much for a property? I have 2 weeks left to ID a property for 1031. The taxes owed would be around $15,000. Stuck myself in a situation without doing any prior marketing for deals because I was spending all my time working as a real estate agent and a flip project that turned into my personal family house. I was actually under the impression, because I was also told this, that I could not 1031 because I wasn't going to be using the same LLC going forward. I am a Realtor and have been looking deals on the MLS is the worst so now anything that may work is not a 1% deal or it's pretty far outside my radius, maybe 1.5 hrs or more drive, but also not very attractive anywhere I have looked. Two weeks is not much time, so here are the few ideas I would love the BP community to weigh in on.

1. This is the "worst" case scenario, and it's not that bad: Go ahead and identify 3 properties and maybe I get none of them and just use the cash to buy something else next year. I could invest in a flip, BRRRR, Gold, silver, Bitcoin even another type of business.

2. Buy something at retail and do some improvements, barely achieve the 1% rule, but hope to sell it in a year after I do much more marketing, and in the meantime make a bit of cash flow. Maybe this could be a BRRR property deal?

3. Try and find a syndicator of sorts who may need about $100k and hope to get 6% "guaranteed" and sit on a MF or Storage deal for the next few years. (least favorite idea -- Unless you know of a really good performing property that I should invest in)

4. Some idea I haven't thought of or don't know about.