This is referred to as a "Reverse 1031 Exchange".

Beside the “subject to” that’s recently become the subject of much debate we utilized  ”no interest short term owner financing”, the “2nd mortgage crank”, substitution of collateral, mortgage subordination, wrap loans, real estate “exchange” (not for tax reasons), sale - lease back, guaranteed rent payments, sale - buy back, land offered in lieu of down payment, zero coupon bonds as substitution of collateral, and a few others that escape my memory.  

Hi @John Wilson , I am in the process to do the same I am near Atlantic City NJ, I would love to connect with you if possible and exchange ideas. 

My husband did a reverse 1031 exchange on a property over 20 years ago. 

My properties in 2 states account for about 80% of my cash flow, but the 4 SFH I have in Birmingham account for only 20%.I don’t want to sell as I’ll incur lots of tax (as they were part of a 1031 in the past), but wonder any strategies like seller finance, etc that could possibly result in higher returns on these properties.I am curious what other BP landlords do when a few properties in their portfolio aren’t pulling their weight….Thanks!

After expenses, it will be cash flowing 1k/month.My thought of doing a 1031 exchange seems like an option..trade in a 170k house for a few 250k homes and increase my portfolio by 600k.

Can anyone recommend a reputable 1031 Exchange Company?

This would allow us to just rent the condo without placing any financing on it, or to 1031 the funds from the sale of the condo and still have the needed funds to complete the work on our homes to accommodate them.

I would make the purchase with a 1031 exchange, putting approx. $220,000 down, financing 8% on 20 years, payment of $2,593. 

If this is a long-term rental (LTR) and you make > $150,000 per year you aren’t eligible to offset non-passive income (W-2, 1099, etc.) with losses from your rental - they get carried forward into future years until you can use them OR reduce capital gains on saleThis is called the 1031 Exchange.