1031 Strategies or Cash?

[Michael B.]

Hi All,

I will likely be selling a property soon that will have a large capital gain in equity ($900K).  I'm a bit torn on how best to re-deploy these proceeds within the current market.  I'm currently located in and will likely be reinvesting in a growing Florida tourist area.

At a minimum I will need to purchase a small/moderate condo/house to replace the one being sold.    Besides that I would like to build a small portfolio of cash flow generating properties for the long term.   The options I'm considering are:

1) buy a small commercial lot to develop into RV/tiny homes etc. (1031)

2) buy multiple small homes to be rented either short or long term. (1031)

3) Should I buy the above options as cash only or extend leverage w/ partial 10/15 year mortgage. (1031)

4) hoard cash and pay 20% capital gains and re-deploy once the market has cooled down substantially.

5) hybrid of the above options.

6) something else entirely.

Thank you much for your time and any guidance you may have with helping develop a strategy for my next steps!

mb