If you do not have enough equity in the home you may want to sell it to break even or 1031 exchange into a property with a positive cash flow.Unless you are in California there are multiple States or Counties to buy a good investment property that can cash flow.

Plus you’re guaranteed to eventually owe CA taxes even if you exchange out of California unless you hold it until you die. 

I have a foreign client who is completing a 1031 exchange, and has decided to bring extra cash to the closing table to replenish the "withheld" FIRPTA amount on the sale of the relinquished property.

We could maximize our capital (~$150,000), but lose any future cash flow with the property.3- look into a 1031 exchange for a multifamily or small apartment complex.

Hello everyone, I am selling an apartment building in California using a 1031 exchange (to buy property in the Midwest) and am wondering if I can use my passive loss carryovers and disallowed losses for that property to offset any boot because I am planning to use the cash pullout as reserves or repair money for when the replacement property is vacant. 

I don't know how to start a new thread.Since the above messages were exchanged I have been doing a lot of studying.  

Hello, I am considering buying a few apartment complexes out of state and exchanging.

As a specialized real estate CPA, I'm here to provide expert guidance on your most complex tax matters, from navigating 1031 exchanges and cost segregation studies to optimizing your rental property deductions and handling multi-entity structures.

Typically, when funds acquire loans, they assume delinquency/default risk in exchange for earning a yield on their investment.Yet this would work differently – it’s a request to purchase debt alongside a corresponding put option/insurance policy.From the buyer’s perspective, as long as the seller remains solvent, with sufficient liquidity for any exercised options, it’s a risk-free investment.

 - The str will be purchased in an LLCQUESTION:  Is there a way to defer/avoid paying taxes on the gain since it’s held personally as part of my primary residence and we have lived there greater than two years and the gain will be less than $500k or as a 1031 exchange investing into the STR LLC?