Did you use a 1031 exchange to "trade up"?

@Patrick Liska  lumber prices flucuate through out the year and the cycles... lumber futures are traded at the exchanges.  

I am a lifelong Clevelander, very active in real estate and I would need to go down and walk/drive the streets to know where to buy and not buy - you need to be that precise in that area.

An entity should be formed - LLC or C Corp. in which each has equity - the Operating agreement establishes who gets what, how and when.I prefer a C Corp. as that makes it easy to take profits as Capital Gains instead of Income, and you position can be sold by exchange of share.

You have to use a qualified intermediary as they are an essential part of the exchange.

We are closing on our first multifamily home and would have benefitted from the reduction, now not so much.Add to the fact Trump wants to limit mortgage interest deduction and remove 1031 exchange, both huge reasons to be involved in real estate, his presidency is already looking grim, and that doesn't even consider his social policies, just what's relevant to this community.

When you get a deal you can go out for coffee with a respectable wholesaler from there and offer to split the deal in exchange for guidance through the parts you're unclear on.

I have a friend who owns 40 doors in Cleveland, but an exchange there would give him 75 or 100 more because they are worth less and he doesn't have the time or expertise to manage it.

It depends on the market and what you are comparing, and you can get nice properties with higher cap rates, but for the most part if you see a very high cap rate you are likely to be taking on much higher risk to get there.If you think about it-- in exchange for the high returns your friend is seeing, he has to deal with a lot of headaches and is at constant risk with bad tenants (I'll argue all day long that bad tenants are the most costly thing of a rental property investment).

I'm about to have a house on the market for $450k with $175k in equity and plan on doing a 1031 exchange.