To avoid paying capital gains on the sale of the rentals, the most straightforward way is to complete valid 1031 exchanges on your two sales.  1031s themselves can be a little unintuitive to navigate. 

At this point the seller knew what the sale price on the contract was.During the title search our Affidavit came up, they asked us for a release, which we gave in exchange for...our wholesale fee.  

Cash flow was around $350 per month.Step 2: Sold the condo using a 1031 exchange to roll over the taxes.Step 3: Bought a primary home in a LCOL city for $200,000 and rehabbed it.

@Sahil Rajput the coasts in general are more difficult to buy cashflowing rentals.Demand drives up prices faster than rents and low interest rates are no longer available to compensate.What investors get in exchange is higher appreciation, relative to the national market.So, it's a tradeoff - if you can cover the negative cashflow until rents appreciate enough, or you sell.Otherwise, you'll want to check out the Midwest.

Tenants often appreciate transparency and may be more understanding of future rent increases if they are aware of the property's maintenance challenges.Consider a Sale or 1031 Exchange: While you've expressed concerns about commission costs, it might be worth re-evaluating the long-term benefits versus the immediate costs.

I did a 1031 exchange in early 2022 from a single vacation rental I had into two DST's, each are  300 unit Apartment complexes offered by Capital Square. 

I'd love to connect and exchange resources/ideas in the future.

Good lord.Here is the exact exchange:---------- Forwarded message ---------From: JamesDate: Thu, Jun 11, 2020 at 10:33 AMSubject: Re: High End Quad; 7809 FranklinTo: LenzaAgain.

A contract is legally binding when it has the following elements:1.Consideration - An exchange of value between the parties.

Was looking for some better ideas for tax planning, and saw this one, but then wondering now how much money I need bring to table.I also have another house I could sell, and maybe 1031 exchange with like 300k equity in it, so not sure if that would help.