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Updated about 3 years ago,
Owner Occupied Rental - 1031 exchange?
Hello,
I currently own one house in Arizona which is my primary residence but also an owner-occupied rental (I rent out 2 rooms).
I began construction on my second house in AZ which will be my primary residence. My original plan was to rent the current house out, but I found a better opportunity back in Michigan where I am from.
Am I eligible for a 1031 exchange if the property is an owner-occupied rental? I can't find any clear information on this. I will be purchasing 5-7 single-family homes in Michigan with the sale of this house.
I've been in the house ~18 months and won't make it to 2 years since my new home will be done in March which I have to occupy within 60 days of closing...
When I talked to a CPA about this, he wasn't sure. But he recommended I rent the house out briefly and then do a 1031 exchange. Which brings me to the question of what is the minimum time a house must be a rental to qualify for 1031? What if I rent the house for 1-2 months and then sell it?