1031 Exchange In Michigan
House# 1 -5 bed 3 ba rent 1400 value 350k -0 owed
House #2- 4 bed 3 ba rent 1875 value 300k -owe 200k
House #3- 2 Bed 1 ba rent 800 value 100k - owe 50k
House #4- 3 Bed 3 ba (residence) val 350k-owe 250k
The original "hold until they double" plan has been smoked by the Big 3 moving to downsize and thus the zero appreciation for 4 years. I will be offered a buyout soon and will want to move either West or South. All told-I would like to avoid paying some taxes. Will a exchange work for a poor soul in Michigan like me who wants to start over in Hawaii?
thanks,I came to the same realization while discussing this . If I rent out the 4th (my residence) I turn the cash flow positive (from $300) negative ) by about $1500 mo. The $1500 can then be used to offset any new residence in a warmer climate. Thanks for clear thinking.