UNDERSTANDING ELIGIBLE 1031 EXCHANGE PROPERTY TYPES

WE SERVICE VARIOUS TYPES OF INVESTMENT PROPERTIES

QUALIFYING 1031 EXCHANGE PROPERTY TYPES

RESIDENTIAL

1031 Exchanges for Single Family Residential Investment Properties

SINGLE FAMILY RESIDENCES

Single Family residences include a variety of different types of residences. These residences include houses, condominiums, co-ops, townhomes, and other residence types. Ultimately, to meet 1031 exchange guidelines, you must show rental activity and hold the property for a minimum of a year or two to qualify as an investment property.
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MULTI-FAMILY PROPERTIES

Multi-Family residential properties include apartment complexes and other multi-residence properties. In fact, well-positioned multi-family properties are highly sought after by investors. Notably, these investors include real estate holding companies, pension funds, partnerships, and joint ventures. When managed efficiently, they have attractive cash flow and long term potential for appreciation.

Vacation Home 1031 Exchanges - Safe Harbor Rule for Vacation Home 1031 Exchanges

VACATION HOMES

Vacation homes can qualify for a 1031 exchange as an investment property. In order to be eligible for a 1031 exchange a vacation home must be managed in a specific way that positions them to business and investment use.

COMMERCIAl

offices

COMMERCIAL OFFICE

Office buildings are common among real estate industry veterans. Common challenges include economic risks, property management efficiency, insurance, legal challenges, zoning changes, and air rights. Operational experience coupled with a long term investment horizon creates an opportunity for a significant return.

storefront

SINGLE & MULTI-TENANT RETAIL

Single and Multi‑Tenant Retail can be a risky investment depending on the tenant(s). As a result, you must be careful to monitor all macroeconomic risk factors. Additionally, you must understand your tenants business & operating outlook. It's important to analyze marketing data such as verifiable traffic counts, steady franchise sales, and competitor analysis when evaluating a property. However, in a robust economy, the CAP rates are among the highest in commercial real estate.

HOTELS

Hotel opportunities typically exist in emerging markets, as primary market hotel properties require longer-term holding periods to justify the investment ask prices.

warehouse

WAREHOUSES

Warehouses are desirable 1031 exchange properties for the investor looking for single user creditworthy tenants with decreased day-to-day management duties.

selfstorage

SELF-STORAGE FACILITIES

Self‑storage facilities are solid investments experiencing strong growth in recent years for 1031 exchanges. When managed well, these properties could provide decent cash flow with minimal property management. These properties may see a large increase in value over time.

SPECIALTY COMMERCIAL

land

LAND

Land is always considered an investment property which the IRS will not question. As a result land is a common property in 1031 exchanges.

1031 Exchanges for Commercial Investment Properties Mariinas

MARINAS

Marinas are specialty properties that perform well in specific locations. Typically, these locations have significant tourism, fishing, and cargo shipping industry presence. Deed & title challenges occur due to government leases in place, and land vs. water boundaries. In the event of title challenges, the proper title holding requirements of a 1031 exchange may be at risk.

oil

OIL & GAS

Oil and gas properties are risky investments for obvious reasons. Although highly speculative, their returns can be substantial if a well hits oil or gas reserves. The promoters of these investments structure them in complex lease arrangements to qualify for 1031 exchanges.