All Forum Posts by: Kelby Schimming

Hello BiggerPockets, 

Quick Note: I did thorough research on this and keep getting contradicting advice.  

I recently purchased a property with the intent of holding it as a long-term rental property. I cosmetically updated the entire house...new paint, floors, countertops, fixtures, and fence. My circumstances changed and I need to sell the property...I have owned the property for two months. I want to utilize the 1031 Exchange, but I am unsure if I qualify as I guess I "flipped" the property. I plan to buy my next property as a buy and hold. 

Can I do a 1031 Exchange even though my original property might be considered a "flip"?

Can I buy two properties with my proceeds from the sell?

Does my original down payment and rehab costs have to go into an escrow account? 

Is it only the capital gains that have to go into escrow account and I get my original down payment and rehab costs back tax free?

Any direction or advice will be much appreciated. 

Thanks in advance