New Investor eager to learn!

[Cedric Van Duyn]

Hi Everyone,

My name is Cedric and I am a father of 3 young boys. I need to find a way to provide for their future beyond my current salary, and that is why I am looking at investing in real estate. I am located about 1 hour outside of Seattle, in the city of Gig Harbor. I am looking to invest in the broader region.

I recently sold our rental property which had us paying in every month and I am currently under a 1031 exchange. I need to locate a property in the next 40 days in order to reinvest. If ever I needed a crash–course and some helpful direction, it would be now!

I want to invest in a situation which will yield positive cash flow instead of us having to pay in. I have been told that duplexes may be a good option to increase rental income, so I am looking into this.

One question: Under a 1031 exchange, do I understand correctly that I need to invest the same amount as what I sold my relinquished property for in order to not pay any tax? (If I invest less, how much will I be taxed, approximately? Example?)

Thank you for any help!!

Cedric