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Updated over 6 years ago, 05/10/2018
1031 DST's experience? Tax risk?
I am 3.5 weeks from my 45th day. IWas going to put 1/2 my funds in a condo (all cash no debt) and 1/2 in a diversified DST portfolio (5 DST's) each about $100k. The DST's are convenient because the debt is non recourse (no applications) and matched 50% LTV paying 5-5.5% cap. I have to do something to carry the $620k debt for the exchange to work and this covers it.
1) anyone have experience with these? (I know there is a fair bit of Load and not an ideal investment if I weren't needing to park my debt somewhere).
2) it's illiquid for 10 years then rolled into another or cash out whichever I choose. Since I would owe over $400k to IRS want to make sure on going tax deferral in this mechanism is a sure thing. Thoughts?
Thanks,
Kathy