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Updated almost 3 years ago on . Most recent reply

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41
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Angela Jossy
  • Tacoma, WA
16
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41
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Do you give up your better interest rates to do a 1031 exchange?

Angela Jossy
  • Tacoma, WA
Posted

If you had a duplex rental property with a great interest rate on its loan but you have the opportunity to sell it on a 1031 exchange to put down 20% on a great deal on a 4plex but the catch is the new (worse) interest rates, do you do it if you have 1% rule kind of cash flow anyway?

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9,074
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Dave Foster
#1 1031 Exchanges Contributor
  • Qualified Intermediary for 1031 Exchanges
  • St. Petersburg, FL
9,430
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9,074
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Dave Foster
#1 1031 Exchanges Contributor
  • Qualified Intermediary for 1031 Exchanges
  • St. Petersburg, FL
Replied

@Angela Jossy, Interest rate is only one of several metrics you need to use to figure out what's best for.  A higher interest rate for a property that has greater appreciation potential, less capital expense exposure, better cash flow...Sure I'd do it.  Like @Mike Dymski said, it's about the net impact not the interest rate.

  • Dave Foster
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The 1031 Investor
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