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Updated over 1 year ago,
FHA Loans and 1031 Tax Deferred Exchange
Good Morning BP family,
I found myself entangled in loopholes this morning as I finished drafting my most recent Real Estate 5 year plan. I recently received some advice about forming my strategy as a beginning Investor in Real Estate from some seasoned winners in a discussion. After mulling over different options and hours of debating with myself about multifamily housing, I realized that it is here, on Bigger Pockets, where I better seek shelter from my newbie ideas.
Goal: I would like to potentially trade my single family primary residence (FHA Loan) that I was intending to rent, and I would like to trade it under a 1031 exchange for two multifamily properties, one of the multifamilies will be my new primary residence.
So here are the questions:
1. Would my sfr qualify if it was never rented?
2. My understanding is FHA's have a period that you have to be a resident. ----- Am I allowed to trade for more than one property property coming from this type of loan? And If so does one of them have to be a different type of loan with different parameters?
3. Is it possible to 1031 trade for two separate FHA properties, one under each person that is on the original loan without running into IRS issues?
If you someone could point me to the right professionals direction that would be awesome!
Because I'm not sure if I should be contacting a tax specialist, a lawyer, or a my mortgage company that I have the current loan with.... or all of the above.