That's puzzle piece number 1.Puzzle piece number 2 in the 1031 exchange is your reinvestment requirements - in this case you sold for 500K so you must buy for 500K.Puzzle piece #3 is that you netted after mortgage pay off 100K in cash - So you must use all 100K in the next purchase or purchases.So now just run the scenarios - your potential tax bill in CA on 100K of profit could easily be  30,000 or more.If you do a 1031 and buy for 500K and use all 100K in cash then you would pay no tax.If you do a 1031 and buy for 400K then the IRS perceives that as taking 100K in profit called boot (yes you might say that it is a return of capital or whatever but they have nuclear weapons and you don't so their interpretation wins).  

We plan to leave CA in the next 5 or 6 years and probably move to CO, so we're trying to determine the best strategy to offload our properties here. 

I own 2 vacation rentals in Big Bear, CA, as well as manage several others for the homeowners.I would say my biggest challenge is the constant upkeep.

https://www.redfin.com/CA/Inglewood/106-W-Kelso-St-90301/home/6449507Just thought this was an interesting story to share, some remodeling and touching up can make your home seem worth more than what it really is. 

If LLC, can we do it in another state since CA is so expensive. 2.

I do not know the laws in your state, however in my state (CA) you'd have to go by Brother's date of death property value and determine if a summary probate is sufficient or if a full, probate estate was necessary.Your friend will need death certificates for all as well as recorded deeds and take to a qyalified real estate attorney.

Hey Everyone! I have been interested in doing some flips for a while now and stumbled across BP. What a great place for knowledge and networking! It's has motivated me to pull the trigger on this adventure. I have so...

Tit for tat basically.

We are currently flipping properties in Florida but we live in California and do not have a RE license in either.Cheers!

Hello, The name is Daniel located just north of modesto Ca in salida.