Selling an investment property can result in significant capital gains taxes.

The 1031 exchange would allow you to indefinitely defer all of the capital gains taxes and use it to purchase multiple newer properties with lower capital expenditures, in a better market. 

The key is going to be showing the long term gains, since they won't see any returns for 1-2 years. 

They don't care about the cash-flow, The write-off's are profitable and there looking at the out-sized equitable gains. 

The transaction allows investors to increase the liquidity and diversification of their real estate investments while deferring costly capital gains and depreciation recapture taxes that may result from the sale of a property.Benefits: REITs also can provide the same ongoing benefits of real estate ownership including income, depreciation tax shelter, principal pay down, and appreciation.

Are you looking to invest in real estate to gain passive income or are you wanting to buy a real estate business and be in charge of operations? 

Hello,I sold 2 properties at a loss in 2023, and one property for a small gain in 2023.

I'm realtor for Magnolia Realty (we're owned by Chip and Joanna Gaines) and I work with quite a bit of investors on helping them buy and sell properties! 

Gaining an understanding of the Zoning is vital to what can be built and essentially dictate how profitable the land can be.

Short term gains using it equals long term cost.