Help! I have too much money!

[Joseph Hammel]

Did that get your attention? HAHA. So I'm doing a 1031. A few of them actually. I have sold the "selling property" and have closed on one of the replacement properties. I have 3 total replacements On the first I increased the amount from the exchange so I got back as a check at closing my earnest deposits, and credits for a prepaid finders fee and closing costs. I'm planing the same on the next 2 deals.

Here is how the numbers look

Purchase price for 2 properties 160k plus closing costs $720 =$160720

Deposit paid by me $10k

New Loan $128k

rent/ deposit credits $667.80

Property tax paid by seller $2528.43

Credit from seller for closing costs $7000 (note this was negotiated as a credit for repairs but it was wrote as closing costs) One of the properties needs a roof.

Total paid by/ for buyer (me) $148,196.23

So $12,523.77 is due at closing.

BUT... I have $36k left to spend from the exchange! Additionally I'm getting $10980 back in a check outside of the closing to pay off assessments. 

So I could reduce the loan amount to 114496.35 then I would get $10k back at closing.

Or can I leave it as is and take back $23503 at closing? 

Turns out the terms and rate is very low on assessments in WI so I was going to just pay them over time. So my second question is the 10980 taxable? perhaps I should just pay it off in closing instead? (the seller is paying for it) 

So other thoughts/ options on both of these issues? Thanks!