If the seller files for bankruptcy, that will involve you in a legal proceeding.

And there you are in luck because you can purchase any type of investment property anywhere in the country and defer all tax as long as you purchase at least as much as your net sale. and use all of your proceeds from the sale in the purchase. 

@Ana Escudero Property insurance renewals have been challenging the past few years, but there’s some stability with carriers heading into 2025.

@JR Gonzalez, You can allocate the proceeds from your sale anyway you want. 

I’ve heard this can have benefits, but I’m not sure where to start.If anyone has advice on how to proceed, I’d love to hear it!

A 1031 exchange will allow you to sell your building and use the proceeds to invest in a small multi family and/or medium term rentals.

And your net proceeds will be $450K ish (again, the closing costs are subtracted from your reinvestment target.In this case you would need to purchase at least $450K of real estate using all of the net proceeds of $450K. 

They are DESPERATE to find insurance and are striking out everywhere!!

., equipment) are excluded from 1031 treatment and are taxed separately—goodwill is typically taxed as a capital gain, while equipment may be subject to depreciation recapture taxed as ordinary income.To minimize taxes on the sale of the business, consider strategies such as Opportunity Zone investments, which defer gains until 2026 if proceeds are reinvested in a Qualified Opportunity Fund (QOF), or structuring the sale as an installment agreement to spread taxable income over multiple years.

Are there any potential risks or downsides I should keep in mind before proceeding?