1031 Exchange -- Multi Properties - Posted by Robby C

Real Estate Investing Real Estate Law
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Posted by Robby C on October 21, 2005 at 11:20:03:

Total Exchange Funds: $100,000.
Relinquished Property Mortgage Debt: $75,000.
Property #1 Sale Price: $50,000.
Property #2 Sale Price: $125,000.

Property #1: Bought outright with $50K of Funds.
Property #2: Bought with $50K remaining Funds + new $75,000 mortgage.

Will this satisfy Exchange Fund rule for acquiring same amount of debt (Property #2) AND allow me to purchase property #1 outright?

Thanks for the help,

Robby C

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1031 Exchange – Multi Properties - Posted by Robby C

Posted by Robby C on October 21, 2005 at 10:10:15:

If I am buying multiple properties via 1031 Exchange, relinquished property debt is $75,000, total exchange funds $105,000, would I be able to buy one property outright for $50,000 and then put the remaining $55,000 down on a second property which would also have a mortgage for $75,000, thus saistfying the requirement to incur the same or greater debt?

I have asked the question to the exchange company rep and they don’t understand.

Thanks for any assistance,

Robby C

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Re: 1031 Exchange – Multi Properties - Posted by Patrick S. Lawson

Posted by Patrick S. Lawson on October 21, 2005 at 10:56:06:

Your exhange funds = $105,000
Your excahanging into $180,000?

If yes…Green light. Go.