All Forum Posts by: Isaac S.

@Isaac S., Rest easy.  you can purchase less than you sell.  And you can take cash out of the exchange.  Just like @Wayne Brooks said.  The IRS calls this "boot" and it would be taxable.  In your case, you'll purchase around $50K less so that 50K would be called boot or profit by the IRS.  And you'll pay tax on it.  But you'll shelter the remaining profit in the 1031.  I'm curious what your QI said?

Why don't you look at a 600k property and since it might be overvalued, it might be worth 450 or 500k. Buy that one. If you are selling 400k I would look at 500k or 600k properties.

@Isaac S. Better to keep the $50k and pay taxes on it than just over pay.

Hey Isaac.

I am located in the Chicago area, where are you finding a SFH bringing in 5k/mo? I feel like that's a high amount...

I have a few SFH in the Chicagoland suburbs, one of which I paid 95k for and im getting 1475/mo, and another one I paid 150k for and am getting 1795/mo.

I like these single family homes because if you buy the right deal, a solid home with good bones, you just won't run into much headache... that being said, the same can be done with multifamily... each deal will differ and have good pros and cons...

Hey @Isaac S. - We have some decent Chicago wrought iron subs.  Happy to give you a couple of names.  Not sure you'll "get a good deal" though, we've found that you get what you pay for.

Hey @Isaac S. - We have some decent Chicago wrought iron subs.  Happy to give you a couple of names.  Not sure you'll "get a good deal" though, we've found that you get what you pay for.