Yes, any cash you take out of a 1031 exchange that isn’t reinvested into a like-kind property is considered “boot” and is subject to capital gains tax.

Another option is to look into some funds as well that allow smaller investments. some are anywhere from 500-$10,000 minimums and accept non accredited investors (through regulation a+).If you ran numbers of a loan paying p&i at 10% but ot being able to reinvest the principal payments you realize how low your returns actually are. so yes notes are great but also understand that idle money for any investment is not fun.

Love his community. 

When is it a smart time to reinvest?

Continue to scale my personal RE investments and learn!

Current goal is focused on growing a portfolio and reinvesting cash flows.

Purchase price: $1,200,000 This is a 100+ pad community located near Downtown Bloomington (Near Indiana University).

It's like full dividend re-invest on an index fund.

But if you'd rather take the equity and reinvest in something with better returns or less hassle, selling might be the better move.

Real Estate, Wellness, and Community ImpactAs I move into 2025, I’m focused on deepening my faith and prioritizing wellness, mental health, self-control, and discipline.