DST or BUST??

[Britney Ross]

Okay, so I made a sizable amount of profit on the sale of my airbnb property and made my best attempt to identify and close on another piece of like real estate but unfortunately, it looks like that deal may fall through because the owners now want to keep it.

Should I:

A) put the money into a Deleware State Trust (yes I did identify 2 on my 1031 as options under the 200% rule). The money would be in a large, high end nursing home in VA and Student Housing in Washington, up to a 10 year hold, looking at about 5-6% quarterly return and maybe 1.5x return at sale BUT illiquid and commercial real estate is tanking so higher risk here. Avoiding taxes is the best benefit then 1031 out of this in a few years.

B) Pull my money out, call it a loss, pay a sizeable tax bill and put the money into another investment

Appreciate any insight here, especially from those with experience in DSTs!!

[Jim Kittridge]

I'd pay taxes before I put it in a DST where I have zero control.

If you can execute a 1031 on a property that you'd buy anyways, great. If not, pay the taxes and wait for a deal that fits your investment criteria. You can earn 5%+ in a money market fund while you wait or do private lending.