1031 Question- More than one property - Posted by Jimmie

Real Estate Investing Real Estate Law
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Posted by JHyre in Ohio on December 14, 2001 at 12:20:51:

Actually, missed a word in my original post…the linmit is three properties or any number with a combined FMV equal to or less than TWO TIMES the FMV of the relinquished property.

John Hyre

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1031 Question- More than one property - Posted by Jimmie

Posted by Jimmie on December 13, 2001 at 08:02:42:

When doing a 1031, I know that it says that you have to trade up into like kind property. Can it be more than one property? Ie I sell one property that has $100,000 equity. Can I now purchase 5 Properties, putting 20k down on each, or am I restricted into buying a larger property? I’m pretty sure it has to be one larger property, but hoping it’s not.

Thanks,

Jimmie

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Re: 1031 Question- More than one property - Posted by JHyre in Ohio

Posted by JHyre in Ohio on December 13, 2001 at 09:11:39:

You CAN exchange into multiple properties. Make sure that the identification requirements are met…you must ID within 45 days of selling the “relinquished” property. You can ID either 3 properties OR any number of properties as long as their collective FMV is equal to or less than the FMV of the relinquished property.

John Hyre

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One Last Question- Less than or Greater Than - Posted by Jimmie

Posted by Jimmie on December 14, 2001 at 11:31:35:

John Hyre :“You can ID either 3 properties OR any number of properties as long as their collective FMV is equal to or less than the FMV of the relinquished property.”

You mean greater than right? Isn’t that why you “Trade Up” with 1031’s? Ie I have a $100k FMV home that has a basis of $50k. Now instead of taking the gains on the $50k, I can trade up to two $100k homes, with $25k down. As opposed to a 90k home that I put $50k down on. Hmmm… now I confused myself because I think this is possible as well. I just couldn’t buy a $40k property and pocket $10k or the whole thing is null and void.

Thanks

Confused Jimmie

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Would you be too offended… - Posted by Jimmie

Posted by Jimmie on December 13, 2001 at 09:25:54:

Would you be too offended if I jumped up, hugged and kissed ya?

Thanks a lot for the great info. I just wasn’t sure I could get more than one. Familiar with the rest of it.

Jimmie