Goals for 2016/2017!

[Brent M.]

Thought I would post this to make it official and "hold my feet to the fire" or some other applicable cliche. I'm in the process of selling and 1031ing 350k of equity from another state and buying multi family in Jacksonville. Finding nice stuff with cap rates of 6 that I feel are speculative at this stage of the cycle, but feel comfortable buying higher cap in lesser neighborhoods, except the northwest. I love single story CBS type places. My goal is to acquire 1.5 million in RE that grosses 200k annually. I'm finding deals that may allow this in 32210 and 32211, but the acquisition process in onerous. Wish me luck!!

[Dave Foster]

@Joey Hamaoui, Sure - the 1031 still works in CA.  You can sell in CA and buy in another state and still defer all federal and state capital gain.  There's just an additional form that needs to be reported every year - the FTB 3840.  As long as you continue to 1031 you will continue to defer the CA taxes.  It's when or if you finally sell without a 1031.  At that point CA will want the tax from the gain attributed to the time the property was in the state of CA.  So defer till you die becomes even more important when you're a CA resident.