Selling multiple properties in a 1031 exchange to consolidate funds for one investment property is allowed, but the property must initially be used solely for investment.This post does not create a CPA-Client relationship.

PS before the hedge funds jumped in about 2011 to 2012 I was an activce courthouse buyer in Henry county and a few of the counties on the north side of Atl metro so been to many of the  auctions having them all on one day is a cluster .. you have multiple criers crying sales simultainously it can be hard to follow but you can also squeeze out one that folks missed.. we did quite well until the hedge funds knocked us little guys out of the area..

If the difference is too much then they will purchase multiple properties using all of the proceeds.

If there is, get a real appraisal with as is and ARV and put together a REAL SOI that you think is conservative from multiple GC's.

This happens 100% of the time a squatter presents a fake lease, deed or bill of sale.2) It takes several hours, if not days, and multiple calls for the police to show up.3) Even when they do show up and remove the squatters, the squatters sometimes break back in the same night.

Seller is the Agent.Seller bought property in January of 2023 for $730,000Current “As Is” Value : $770,000Target Acquisition Price: $730,000-$780,000 After Repaired Value: $900,000Repair Estimate: $120,000Initial Offer Amount: $715,000Loan Program: Bank Statement Program.Total Estimated Monthly Payments (Principal, Interest, Taxes, and Insurance) $5500/month (based on $770k purchase price)Estimated Gross Yearly Income from Short Term Rental: $160,000 (65% Occupancy, $700 a night| (STR Listing Comparable properties Listing 1 Listing 2 Listing 3)Net Monthly Income after management and taxes: $11,751.25Net Monthly Income after Mortgage Payments: $6251.25 ($75,015) Per YearTotal Cash Investment: $297,000 ($177,000 in down payment and closing costs and $120,000 in repairs)Average Yearly Return on Investment: 25% yearlyAverage increase in property value per year: 5%Average increase in booking revenue per year 7.5%Property Value average after 10 years: $1.5 millionTotal Cash received over 10 years: $1.3 million.Total Equity multiple min over 10 years: 6x total return on $297,000 invested.

Could you end up finding one or even multiple deals at auction?  

An NFL player at 250 lbs is going to be a different fitness level than couch potato that weighs 250 lbs.

Otherwise, the deal (and all my earnest money/inspection costs) falls through.Money Spent So FarEarnest Money Deposit: $1,500Appraisal: $750Inspections: $1,050Survey: $580I’ve invested a fair amount already, and I really don’t want to lose this opportunity.Financial SnapshotMonthly Income: $4,500 (increasing to $6,000 by March).Monthly Expenses: About $2,000 total, including $1,000 rent (which I won’t have once I move in).Future Income: By June, I expect even more significant income from my business ventures.Debt-to-Income: Not too high right now, but my credit score is poor, so that limits quick loans or credit card solutions.Condition of the PropertyFull Rehab Needed: The house currently isn’t livable without major repairs.Seller Won’t Negotiate: I’ve already asked for an extension and concessions, but the seller is unwilling to help or budge on anything.Attempts So FarFriends & Family: No one can cover $25K.Down Payment Assistance Programs: I’ve tried multiple; none seem to fit.Co-Signer: Already have a co-signer on the mortgage.Personal Loans / Credit Cards: With my credit score, interest rates are brutal, and I’m worried about jeopardizing my FHA approval.Extensions: We’ve already pushed the closing date back by a month.What I’m Looking ForCreative Financing: Any reputable local lenders, credit unions, or community programs in Detroit that specialize in these types of last-minute shortfalls for buyers with less-than-ideal credit?

Look at the results in multiple ways and over different time horizons.