Have to think fast and act fast.

[Lena Shaba]

I found biggerpockets just a few weeks ago.

We have zero experience in real estate, although we moved from our primary resident house a few years ago and rented out it using a property manager. But we never looked for a house for investment reasons.

Now, we are planning to sell our first house using 1031 Exchange and I need to learn in a few months what is the best way to find a good location with a good deal(probably not just one) :)

The only thing that I've done so far is I'm in the middle of reading the book "Start with strategy".

• -I don't have friends in this business,
• -We live in Charlotte, NC and I would prefer to find something not more than two-three hours of drive
• -I wish we could get a duplex, but I don't know what the main difference in operating a single family and a duplex.
• -We have medium/low-risk level in the family:)
• -Looking for a long-term investment
• -I am ready to spend some time learning, but I am not sure if 45 days waiting period will be enough for me.
• -we are in our early 40s if it matters. :)

On the Biggerpockets podcast, guests always say you have to find the right people, but I couldn't find too much information about the Charlotte Area here or find the local meetings.

Any recommendations would be really appreciated. Do you recommend rethinking the 1031 strategy because of the lack of experience?

[Dave Foster]

@Lena Shaba Have you lived in the property for two out of the previous five years? 

If so you could qualify for a 121 primary residence exclusion, which would allow you to take the first $250k ($500k if married) of the gain tax-free. 

If you qualify for the 121 exclusion and you still have any additional tax left over, then you could also defer the rest in a 1031 exchange since the property was converted to investment. 

As for the identification period, you have 45 days from selling your relinquished investment property to identify a list of potential replacement investment properties.

A good way to make this process as smooth as possible is to start shopping around before selling your relinquished property. 

If you find a replacement property you like you could even go under contract before selling your relinquished property.

Naturally, your old property must sell before you can take title to the new one but nothing prevents you from going under contract to make the process smoother. 

The identification period may seem daunting but I find that 95% of my clients have successful exchanges.