1031 Into Land To Build Residential Multi

[Mario Richardson]

Hello Biggerpockets Family

Thoughts on selling a SFH to 1031 into land that qualifies for duplex- quadplex? I've heard Lland can serve as a down payment for new construction. Home has about $100k equity do to previous refi cash out.

Thoughts?

[Joshua Christensen]

Construction lending is different than existing lending.  

Yes, typically, the lenders will account for "hard costs" associated with the deal as part of the initial down payment / equity from the borrower.  Be sure to discuss with a qualified lender in your area that does construction lending like this.  

Every lender has different standards on these as they are more of a portfolio product at the banks.