Quote from @Ian Ippolito: Quote from @Michael Plaks: Quote from @Ian Ippolito: Quote from @Rud Sev: 3) Unless you're doing a 1031 exchange  at the end or similar tax structure to defer taxes, you will have to *pay back* all that depreciation benefit at the end (on sale...which for you is in 5 years)  via depreciation recapture.

Hi @Ben Lindquist, The 1031 Exchange Qualified Intermediary is a crucial part of any successful 1031 Exchange transaction.

This could involve offering a higher interest rate in exchange for reduced upfront costs or deferring payments until a certain milestone.If building right away isn’t feasible, consider buying the lot now with the goal of paying it off over time, and save up to build when rates and budgets align.

@William Bohan, Yeah, being a CA resident you'll have to do a 1031 exchange or your tax will approach 40%. 

I think long term it can make sense especially if you can 1031 exchange into something down the road. 

How do you do a key exchange? 

This means that the property doesn't qualify for the extension, probably because it doesn't meet the covenants such as DSCR or debt yield, so the lender is making an exception and is willing to grant the extension in exchange for the $4 million.

Then you can combine or exchange for a better or more consolidated/ better proforming area.  

Is there a way for us to exchange information?

You don’t kill your whole exchange.