My PM notified us our tenant in our SFH rental in Salem, OR is purchasing their own home and will be moving out the end of May or June. Selling this unit has been a discussion for a couple years now and this vacancy might be the right time to do it. Deferring capital gains tax via the 1031 exchange into another property seems the most beneficial and efficient. I know little about 1031. I know we'll need to use an official intermediary, 45 days to identify like/greater properties, and 180 days to close.

question #1: Is anyone savvy and familiar with 1031 willing to chat? Wanting to learn the basics and also to gather some previous experience and wisdom, things you wish you did or didn't do. mistakes to avoid etc. Or can anyone list some good resources online where I can read up on it all?

I'll write some context on the house we're wanting to sell and why.

Bought 760 E st NE in Salem Oregon back in 2016 for $168,000. With a quick paint job, minor cosmetics, and landscaping the house rented quickly. Since 2016 we've had it rented 99.9% of the time. It's been a golden goose laying eggs. Rent has been almost double my PMI so it's cash flowed extremely well over the years with no large maintenance costs. With the market and demand property value has increased a lot. Zillow says $317K I know zillow isn't the most accurate, nonetheless, it's value has increased so much. If we sold for 300K-105K (mortgage balance)= 195k. divided by my monthly net profits about $650. It would take me 25 more years to see the same return. Additionally, I don't live in Oregon anymore and frankly want to just exit that market area because I can self manage rather than pay a PM. and looking to benefit from the growth here in NC.

Targeting the Raleigh expansion. We're seeing massive property value growth in Raleigh and bordering towns south down highway 1.

Winder Station is a new large development selling new builds/lots starting in the mid 200K range in Vass NC. talking with agents in the area, people from Raleigh are willing to commute, as well as military families stationed at Ft Bragg. So I'm starting to considering purchasing one of these "build" contracts. construction is projected to finish in November 2023.

question #2: Does anybody have experience investing in these new build developments before the houses are even finished? is this model a strategy used by large developers to minimize their risk levels? If the developers don't "pre-sell" enough of these houses will the project not be finished?

kind of a long post. just wanted to put as much info I can. I know there aren't a lot of exact numbers in here for you to go off of. I'm more trying to understand the grand schemes and risks involved if that makes sense. I'll be crunching numbers best as my little brain can lol but that's why I rely on the pros to keep me straight.

thanks!

Fayetteville, North Carolina

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