A 1031 exchange doesn’t apply, but funding through a self-directed IRA can defer taxes, though profits from debt financing may trigger UBIT.To reduce taxes, consider forming an LLC for better expense deductions, offsetting gains with investment losses, or holding the property for 12+ months to qualify for lower long-term capital gains rates.This post does not create a CPA-Client relationship.

In my experience, most mom-and-pop investors lose a lot of money due to poor management of tenants, as well as poor/deferred maintenance.

This allows us to 1031 exchange post-sale into a new deal, compounding cash-on-cash returns and deferring capital gains.Let me know if you’d like to discuss further!

And if someone implements a " defer, defer and die" strategy they can avoid paying taxes on real estate indefinitely.That's the quick summary.

At some point the gov bond market drys up, the gov becomes desperate for cash, and anyone with deferred taxes looks like a fatten cow ready for slaughter.  

Is there a way to use a 1031 over time to sell rentals and use the tax deferred money to buy a larger purchase?

These are high quality properties that require very little or no deferred maintenance for the Buyers.  

If you’re interested in investing in real estate, you can consider doing so with a Self-Directed IRA to defer taxes on capital gains until you actually withdraw the funds from your IRA.

DSCR loans are only for rent ready properties (no "subject to" or min less than $2,000 in deferred maintenance). 

Instead, roll the funds into an IRA or Self-Directed IRA (SDIRA) to keep them tax-deferred and open up flexible investment options, including real estate.