Sell or not to sell in hot CA marekt?

[Rachel Zhang]

Hello fellow investors, 

I would sell my investment properties in CA if not for challenges in finding decent replacement properties via 1031 exchange.  What are your strategies? Sell now to capture the market appreciation and pay capital gain tax OR try best to find OK replacement properties with compressed cap rate via 1031 exchange to avoid tax?   Maybe many people are wondering the same question. Love to hear from you.

[Brian Schmelzlen]

I would consider a reverse 1031. That way you can find your replacement property first (instead of being rushed due to the strict timelines), and make sure that it is a good deal.