Best strategy to put equity to work?

[Kirk Williams]

I would like to leverage the equity from a SFH rental to purchase a multifamily.

I have a rental property (former residence) that I've owned for the past 9 years. The rental income covers the mortgage and PM fees, but the property is cashflow negative when factoring in maintenance, vacancy, etc. About -$100/mo

Assuming I'm able to sell it for the same price as it was purchased, which would be worst case scenario. I would have $32K in equity (before closing costs).

Is this a good candidate for a 1031 exchange or do I have other options? I’m not sure if there was a minimum amount of equity I should have to make it worth the extra fees.

Thanks in advance!

-Kirk

[Kirk Williams]

@Tamara Deering, thank you for the great advice. I will definitely get with a tax pro for a recommendation based on my specific situation.

@Kevin Keller, nice job on that equity stack! I will be looking forward to small commercial property hunting after I figure out the 1031 piece.