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Updated about 4 years ago on . Most recent reply
1031 exchange question
My friend's parents are looking to do a 1031 exchange and he had a question I was hoping you can help me with.
They live in a 4 unit house which they purchased 40 years ago and it's currently under contract for 2.1 million. They are looking to 1031 exchange it into 3 single family houses, one for themselves and one for each of their daughters. Is this something that can happen?
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#1 Real Estate Deal Analysis & Advice Contributor
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What those 2 experts said. PLUS, you can’t use the 1031 funds to purchase a personal residence.
So they can take the 500k take free s personal residence. Then take the $1.5mil as a 1031 exchange if they plan to spend $1.5mol on rental properties and then they can spend the $500k on their personal residence. (They could also buy 2 SFR rentals for a million total plus a $1 million dollar duplex and live in half of that.