When it make sense to get exchange 1031?

[Tal P.]

Hi,
I am trying to figure out if it make sense for me to do exchange 1031. I bought unit in $465k cash and sold it in $555k this week. I am trying to figure out if it make sense to use exchange 1039 because of the "low" profit gain. In addition, if you had 0.5M to invest in real estate, what do you think the best way to do it?

Thanks

[Andrew Kerr]

@Tal P. If you sold it last week, I believe its too late to do a 1031 exchange. @Dave Foster can verify this.

Then if it was me and I had half a million, I would put $250k into a couple syndication deals. Then I would put the other $200k and leverage it to buy around $800k in easy to manage properties where I could put a PM in place and not have to worry about anything. Then I would bank the last $50k for reserves or until another really good deal came around.