All Forum Posts by: Kimi Ho

Thank you David. So just for clarification:

1. The exchange has to start before the close of the property?

2. What are associated costs transferring title to EAT and then us (will there be transferring cost twice?). How will lender respond to that and how does that affect escrow? Is parking in EAT totally independent from lender, current purchase contract, etc.?

Also, do I have to indicate in the current sales and purchase that it is intended for 1031? I am afraid that that will delay the closing dates.

Hi David,

Would I be able to do a reverse exchange after I bought the property and sold the other 2? As mentioned the first investment is scheduled to close anytime soon (maybe this week) and the purchase is scheduled to close July 31. The other property for sale will be on the market within the next week. My other question is regarding the allocation of value. Does the value of both sides depend on the appraisal or is that simply divided in half as in your example. The original property was built in 1953 and another unit was added in 2007. Greatly appreciate your help. 

Hello,

We are currently in the process of selling an investment rental property for $200k (in escrow) and purchase a split use property for $1 mln (also in escrow). The property will serve as a split use as it has 2 entirely separate units with one common wall (1 house number and 1 parcel). We are planning on renting out the older home (1953) and live in the newer construction (2007). To make things even more complicated, we are also planning on listing another rental property within the next months ($300k). We would really appreciate is if we could get some expert advice on whether a 1031 would be possible at all. And if possible, would such need to be indicated in the current sales and purchase contracts? The proceeds from the first sale will go directly into the escrow account of the purchase. Please let me know if any other info is needed. Thank you in advance.