All Forum Posts by: Pixel Rogue

But if you have 1031 and sold the property and are thinking about either rolling into another 1031 or looking at Opportunity Funds. Opportunity Funds will end up being the biggest winner.

Early in my REI. Did a reverse 1031. Was able to use our existing property as leverage on the new property thru the same bank.

Bought the new property at auction, thus the purchase had a set timetable.  

Our property went under contract.  Burned up time.   Found out the buyer did not get financing. Did a quick auction on our property. 

1.  Validate buyers.

2.  As mentioned have a second plan.  

God watches over idiots.  

Bought the original land for $1,100 per acre.

Auctioned it off for $3,000 per acre 5 years later.

Bought at auction the new property at $7,000 per acre.

12 years later subdivided and sold for $50,000 per acre.  

Kept one lot so we could go fishing on the pond we built there.  

@Mike Auerbach, or simply buy the replacement property BEFORE selling your existing property. This is referred to as a "Reverse 1031 Exchange".

However, keep in mind that in some states including mine (PA) that you get hit with property transfer tax twice. Once when the replacement property is purchased and held by the 1031 Intermediary in an entity for you and once at the end when its finally transferred to you. I don't believe most states do that, but ask those questions of your intermediary if you consider this. 

I don’t think you want to try the fund sites. Their plan is to sell in 3-5-7 years and capture the gains so they can cash in. Then you’ll be forced to start over. 

Try a different market or property type? Are you using a PM? I only have a dozen properties but I spend less than an hour a month and half of that is accounting because I like doing it. I might have 4-5 repairs per year. (1 every couple years per property.) But 2-3 of them are under $250 and I never even hear about them other than the fact they are fixed. Most tenants stay 5-10 years so there’s almost zero vacancy. 

I bought SFR under 20 years old in a market with no damaging weather, stucco siding, and tile roofs for basically zero exterior maintenance. Then I picked a solid PM. I think that's key to being a landlord long term. I've only got 25 years in so far. But I find it more boring than tiresome. There's nothing to do.

I can’t sell them, my life wouldn’t become any easier. I’d just be giving up my freedom and a boatload of tax deductions. 

 Really important not to let the tax tail wag the dog. You have made decades of rental income and appreciation. Sell them, pay Uncle Sam and enjoy your much deserved retirement.