Help! Need help with my situation on 1031 exchange

[Timothy Murphy]

OK this is the situation I’m selling three homes in Oregon and have to move over 1.2 million in a 1031 exchange and have $700,000 in loans. I buy single-family homes in the Memphis area and the average price is about $60,000. That means I would have to purchase 20 homes with financing and most lenders stop lending at 10 homes. What should I do with this 1031 exchange money? Continue to find a lender that will lend on the 20 homes may be at a higher rate or start looking at multi family units? Are there lenders out there that can lend on more than 10 homes?  hoping anyone can assist.

[Dani Beit-Or]

Option 1 - Buy a package of rented homes w/ rent history and fo to a commercial lender. Such a lender LOVES producing assets and "hates" to-be-rented ones.

Option 2 - Buy 10 120k houses

Options 3 - Buy 7 175k houses in nicer parts of town.

Buy as many as you can w/ no financing and others w/ financing. For example 3 cash and 4 with financing. This way you can reduce the # of mortgages during the 1031 to simply the 1031 process.  At a later time do a refi when all is calmer and relaxed.  

Buying multiple properties can be hectic as it is, doing it w 1031  makes it crazier. Reducing the # of the transaction make your life easier.