Investment Info:Townhouse buy & hold investment.

Once you have completed the consolidation portion of your 1031 exchange you now own a more expensive (and probably really nice) property that it must be your intent to hold for investment use. 

We make people take photos of themselves holding their ID and then I also meet them in person for the showing - at least for my units on the NW side of Chicago.I've never heard of these testers, but I am not surprised. 

The bank will make you leave 25% equity in the property - but you also still want the property to at least cash flow some - so be careful how much equity you pull out / new debt you take on.I would do a cost benefit analysis of what your actual gain is in cash-flow on buying a new property with a (currently) higher interest rate (if financing), versus just holding on to the current appreciated property and enjoying that cash flow.All the best!

The cash flow would be nice, but are you planning to hold for a long term or refinance before the balloon or sell?

In addition, you can even organize any fix-and-flips and buy-and-hold inventory. 

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.

Quote from @Martin Jones: Hello, I'm young individual who is interested in long term buy and hold multifamily real estate.

Knowing the average bP buy and hold investor this type of information would be for advanced investors that deal in the back end of real estate not the front end like most who just want to buy a house for under market rehab refi rent or flip. 

How do you set up/collect the security deposit hold?