New to BP from Seattle

[Shaan Mathur]

My name is Shaan Mathur and I'm new to BP. I got my start with real estate investing in 2011 when I decided to buy and owner occupy a triplex in Seattle on the advice of a good friend of mine who works in commercial real estate.
Originally my strategy was to buy and hold, but after getting married and needing more space, I recently sold so my wife and I could get a single family home. I'm currently in the process of looking for a multifamily to 1031 my rental proceeds into--and the reseach on this process is what led me to BP.

[Dave Foster]

Hey @Shaan Mathur congratulations on the family growth!  From the comments you made it sounds like you've already closed the sale of your triplex.  If so your QI has the proceeds from your sale and you're in the 45 day identification period and feeling the heat of trying find the right replacement property.  If you didn't have your 1031 in place at the time of the closing of your sale I'm sorry to say that you are not eligible to complete a 1031 on that property sale.  The statue specifically says that the 1031 must be "subsequent" to an agreement to do the 1031 and that you may not have actual or constructive receipt of the money. Even if you have left the funds in escrow with your closer that is still considered receipt of the funds unless the 1031 agreement was in place and funds are in the directed escrow of the QI.  

Don't forget that within that sale of the triplex is an allocation that was your primary residence.  If you lived in that portion for 2 out of the previous 5 years you do not need to 1031 that portion.  That is not investment property it is your primary residence and is subject to the rules of 121 which is actually better for you - the profit from that, up to $500K since you're married is tax free.  You may have already carved that allocation out with your accountants help.  If not that might help you pare down your 1031 reinvestment requirements.