strategy

[Susan Capeta]

i bought a house in 2011 that was at $200 and now it is at $500, i think the market is still going up. My strategy is to wait 4 years than sell it when the market is high and than wait for the market to tank and buy 3 houses with the profits. My concern is when i do sell it i have to pay a lot of taxes and if i do 1031 i only have a few months to sell it to avoid tax.

how can I sell and avoid taxes.. if i am not ready to sell it in a few months.. i want to sell it keep a lot of profit and wait until houses go down in value than buy 3 houses.. what is the best way to do this.. 

im sure some of you guys have the strategy of buying cheap selling high and buying several houses when the market tanks.. how do you minimize your tax liabilities?

[Russell Brazil]

@Susan Capeta Ive never personally completed a 1031 exchange, but I have clients Ive worked with that have.  What they have typically done is they usually locate their target property first, get a contract on that contingent on selling the other property and doing a 1031 exchange. This is how you take the stress out of a 1031 exchange. No reason to sell till you have a property you want to buy.

Now you mention that you want wait till buy to till prices go down significantly....well while I do generally think you you might be able to predict a rise in prices, I think it is nearly impossible to predict a drop in values.