Dave F, Thanks for the heads up on the possibility of a reverse 1031 I didn't realize that could be an option and it looks interesting. I wonder as a seller, when some one approaches with a reverse 1031 offer, is that considered "not ideal". Of course, cash offer is king and allows you the most bargaining power. With a reverse 1031 can I still propose seller financing (as long as it is the same or greater than the loan on the original)? What are the down sides to a seller when he is considering a reverse 1031 offer to buy his/her property?
Mark, we're flexible. NYC is great because it is so solid and of course the appreciation, regardless of what is going on. But, the cash flow and isn't great and the winters can be brutal. Texas doesn't sound too bad to me, it's a possibility. I'm in the construction industry MEP project engineer. A value add opportunity here in NYC could be perfect for but it would require cash out and time to do the upgrades, which seems difficult to impossible with a 1031. Maybe, at some point that would work. But, for this particular deal, I believe it would behoove me the best to get into something that is cash flowing better, so it can afford me the time to get into more rehabs / flips.
Bob B, you make a good point. The appreciation in NYC has been unbelievable but it's not going to continue at the same pace. This year it is anticipated to be 5% while it has been 10% over the last years. If I can trade this in for something that is cash flowing at $10k or better every month I'm home free, no more day job! It seems like it should be possible and the 1031 reverse seems like it also is the way to go. The current lease is up March 2017, so that is my day to sell. Reading and preparing until then, look forward to building connections here on BP, so I'm ready and if possible, have a deal pipeline built up.
