Selling property, want to reinvest and avoid CG tax

[Daniel Delanty]

BP community, I could use your guidance. We are selling one of our 2 rentals to free up cash to reinvest. We thought about a refi but decided to price it high as the market seems to be peaking and to test the water. We will walk away with approximately 200,000 in cash and a capital gain of $150k. My wife is now in real estate and we are considering using the proceeds to buy multiple properties if we can buy right or to buy one property that we could someday move into for two years to avoid ever having to pay the capital gains tax. I feel like there are many good options but that we have this prime opportunity to grow the $ into significantly more. As our town seems to be lacking any amazing deals we may look 20 to 30 minutes away to find a great buying opportunity. Any thoughts?

[Frank Chin]

What you need to do is a 1031 exchange. You also need a Qualified Intermediary to help facilitate the transaction.

Here's some helpful info: 1031 Exchange