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Updated almost 4 years ago on . Most recent reply
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1031 Exchange and Finding a New Property
I am selling a rental house I have owned since 2006. It has been a rental since 2012 and I was just notified the tenant will be moving out March 31.
So, I have a couple questions:
Should I talk to an accountant or has someone been through this before. I am trying to calculate how much needs to be added to the 1031 or how much I can offset based on prior costs.
And...sounds like I will be in the market for another investment property or two in the Warren, Sterling Heights, Rochester, Auburn Hills, or similar areas. I prefer to find properties in poor condition. Does anyone have a best practice to find such properties? I have used a Realtor for the last couple but, just curious.
Most Popular Reply
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- Real Estate Professional
- West Palm Beach, FL
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@Mike Kratz There are 2 basic rules for the replacement property...
-You must purchase at least the same dollar amount as the sales price (less commissions and actual selling costs) of the property you sell.
-You must reinvest ALL of the cash you receive from the sale of the existing property.
You can add any additional cash if you wish.
@Dave Foster can explain in further detail.