1031 into Multi-family

[Bhushan Shinkre]

Hello! I've got a couple of investment properties (condo, townhome) in Chicago with overall market value of $500K+ that I'd like to 1031 exchange into better performing small MFR properties. Planning on individual exchanges to maximize sale but could look into possibility of a consolidated one. It really depends on strategy. I also have multi-family (duplexes) in Indianapolis and SFH in Birmingham, AL. I really like Indianapolis and KC as terrific markets for multi-family, but inventory is extremely low and hard to find good deals. Would love to hear more from folks who are going through or have gone through recent exchanges either in these markets or are there better MFR markets to look into that provide excellent ROI (1% rental yield, 10%+ cap rate, etc.). I'm open to creative ideas such as an established STR / AirBnB SFH in an established vacation market. Also open to part 1031 exchange and part creative financing options (traditional, DSCR, etc.) to maximize the replacement ROI. All ideas are welcome and appreciate them!!

[Jonathan Klemm]

Hey there @Bhushan Shinkre - Sounds like you are in an awesome position to be in, congrats to you!

I recently did a 1031 exchange last year and it went great!  I sold a ground-up single-family home and purchased a 19-unit in Cicero, which is a western suburb of Chicago.  Just curious are you in Chicago?

For me it honestly went pretty smoothly, I just started telling everyone what I was doing and what I was looking for and my good friend @John Warren hooked it up, with an off-market deal through a commercial broker.

In your situation, you could also consider a reverse 1031 exchange.

Happy to connect and provide any needed referrals or walk you through my story in more detail.