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Updated over 6 years ago,

User Stats

45
Posts
5
Votes
Adam Sporinsky
  • Investor
  • Chicago, IL
5
Votes |
45
Posts

Minimum time to AirBnb/Short term lease before 1031 on sale?

Adam Sporinsky
  • Investor
  • Chicago, IL
Posted

I was looking at a deal recently that was for multiple properties at once and one would have included something that turns into a flip.

The property was also in a fantastic area for Air BnB so the plan was to actually air BnB as is for a while, then do the work for the flip and sell it.  I was trying to determine how long I would need to use it as an air BNB before I could potentially 1031 the sale of the building.  I wasn't able to find anything on this though.

Does anyone know what is required, or have a general rule?  It seems like there could be potential to use this kind of temporary rental structure to make things like a slow moving flip be 1031 eligible, potentially saving a lot of money over time.

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