From what I understand, a 1031 exchange doesnt apply in this case, and so I will have to pay short term capital gains on the appreciation ?

Or any amount of cash you take out from the exchange are considered to be profit. 

This way the partner is getting paid more precisely for what they contribute.

@Blake Kirby I just finished the first half of a successful 1031 exchange for BP clients from California...the second fourplex closes early next week.

Battery Park City Exchange (New York City): The city of New York engaged in a land swap with the Battery Park City Authority, allowing for the creation of a new public school and affordable housing units in exchange for a parcel of land that was then developed into a high-value commercial property. 5.

I’m thinking about 1031 exchange , the town is a sleepy town , the same contractors and good tenants don’t last that long 

Are you aware of the 1031 Exchange and how it works?

The 1031 exchange rule to defer your tax is two part 1) reinvest all your proceeds and 2) purchase a property (or properties / DSTs/TICs) with an equal or greater market value.  

Use 1031 Exchanges to Defer TaxesIf you’re selling a property, a 1031 exchange allows you to defer capital gains taxes by reinvesting the proceeds into another property.

I’d love to exchange insights, explore deals, and help each other grow.Feel free to DM me or comment below.