They have evaluated the property at 720k (in my local currency) and will go on auction for 50% of this so at 360k.

Will we run into any issues with the 1031 exchange as far as like properties are concerned?

Is this a 1031 exchange you are completing?

Hi Adam:Have you done 1031 exchange through zero coupon ? 

I made the mistake of running the initial numbers based off of downpayment of 57% from a 1031 exchange in which case it cash flows $735/month at full occupancy but even in this scenario 1st year coc return is 3.14% Clearly,  I do not want to overpay for this property and give up my hard won 1031 equity.

This is usually done through trading up or refinancing, meaning they buy a 10 unit, then sell/refi and exchange into a 30 unit, then sell/refi and exchange into a 60 unit and so on. 

Approx $300k in equity and the goal has been to 1031 exchange into a comercial property ~$1M. 

I would fix it up, and 1031 exchange it into a property with separated out gas, oil, electric.

I don't want to string these guys out with a huge line of credit, but I also want to incentivize them to find better deals on materials and wait until the end of the project if there are exchanges and returns.2) Do you pay a certain percentage up front (20,30,40%) and then pay the rest at the end of the job?

My thought was to receive a condo or town home and dock slip for each of my family members (with all taxes and fees paid by developer) plus a monthly payment in exchange for the land use.