Signed contract for rental #3

[Sarath D.]

Hi All,

Excited to share the news that I have signed the contract to buy my new rental home. This is my 3rd investment home. 

The previous rental homes I owned appreciated a lot and in the past some experts  suggested I sell and do a 1031. I did 1031 in the past once and even though it is a great option to differ the taxes, the pressure to find a replacement in a limited time was a bit stressful for me. So I took the cash out refi option and invested the cash that I got from the refi as a down payment for the new rental. 

I appreciate any suggestions or feedback on the approach I took. 

SD. 

[Sarath D.]

Thank you @Dave Foster for the reply. 

I agree with you on letting 1031 time expire if I can't find a suitable replacement. But I was trying to defer the taxes so tried very hard to find a replacement. And thankfully I was able to. 

Two of the properties I have refinanced are in in Denver suburbs and both of them are appreciating very well. Before the refi they were cash flowing and with this new refi, I may have to pay a couple of hundred $ from my pocket but based on the numbers I ran my 3rd property should cashflow enough to fill that gap. 

I have one question on the last point you mentioned. What do you mean by entering a late market? Do you mean the market is already up and I am entering late? 

Again thanks for your feedback. 

SD.