All Forum Posts by: Paul Milnik

@Dave Foster I just re-read your answer. How does that exactly work? How can you 1031 into a rental and then convert it to primary? I was thinking I would just pay the taxes and then buy a potential fixer primary? Any info would be greatly appreciated.

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That is a bummer. I was thinking exactly what you said though. I will have good proceeds from this 4-plex and I could find a fixer and maybe move into that eventually!

- Nate

Originally posted by @Dave Foster:

@Paul Milnik, It's a great thought but it won't work. You can't exchange into a property you already own.

However, you might think about making one of the investment properties you are purchasing to be something really nice that you might like to live in one day. After using that property for a year or two as investment you then sell your primary (take the primary residence exemption tax free) and convert the investment property into your new primary residence.

This lets you take fullest advantage of the primary residence exclusion and restart the clock on your next primary exclusion (although the rules are a little different when you convert a property). It also lets you take full advantage of the tax deferred inside your 1031.

It just takes a little patience

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Hi all, interesting question if there is any way to do this. I am selling a 4 plex and want to 1031 into a couple properties. My question is whether one of those properties could be the current house I live in. I would like to turn it into a rental (I would buy a new house). Can I designate my own primary as a house I am buying as a rental as part of a 1031 exchange?

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All Forum Posts by: Paul Milnik

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