I've got an RV park that I bought for 282,000 in august last year that I'm selling now for 370,000 and wanting to do a 1031 exchange but have never done one.

I have a duplex that I've already got an accepted offer and a single family home that waiting to hear back on offer but combine for a total of 285,000 meaning I need to spend another 80,000 or so to cover the full 370,000.

My questions:

1. Are closing costs and fees able to be used in the exchange amount?

2. For the remaining amount, would I be able to purchase a half acre lot and tiny home and that be an acceptable property to fit into the exchange? This property would also be rented out.

Thanks for any help as I'm very new to this process.

Lu Ann Blough || direct 972-863-1031 || LuAnn@erg1031.com

Regional Development Director || Exchange Resource Group || www.erg1031.com

Thank you

We are in the process of our first one.

It seems pretty straight forward. We sold a house last month, decided to try a 1031, found 2 properties & listed them with the 1031 agent. Easy process & because we are buying from one owner, we only have 2 total 1031 transactions - the sale of our flip & the purchase of both houses on one contract. We close on those 2 next week.

We are left with about a $30K "boot" which isn't much when you're looking to buy something decent. We are scouring the area but, so far, there's nothing for us to list before our 45 days is up. I really don't want to add more money to "the boot" either, so I think we'll just have to pay tax on that.

Thanks and that's my dilemma. The two properties that I want equal right around my initial property amount. I'm left with the difference of my gains only so not getting a property with the remaining amount doesn't make sense.

However I don't want to spend much over the 370k mark.

I'm pretty sure the transaction fees are covered + I think you can buy the land with the intention of adding the tiny house. I don't know how buying a tiny house to move onto it figures into the allowable purchases - we briefly touched on that with our guy but didn't dig too deep because we have so little boot & our choices are limited.

Again, not an expert - we are learning & it came down quick so we didn't have a lot of time to research. That said, it's gone really smoothly & we are eating up around $70K of our $100K gain & having that extra cash post-tax will be some fun money.

After we got everything locked in, we ran across a duplex that would have taken the whole thing but it would have been overpaying for it in this market & we'll make more on the single family rentals in the long run. Our tenants stay for years in those & our multis - although lucrative, too - have a much higher turn over, so more hassle overall. We are happy with the 2 houses.

I'd check with the lady listed by NTXAg - he sent her name to us, too. We just happened to find a local guy that a friend had used, so went that way.

Awesome info! Thank you for the input.

Process continues to be easy. We closed on the 2 houses yesterday & have a small amount left in the boot. We have until July 16 to identify another property or we get that back & have to pay tax cap gains on it.

Could buy land with it - but not much & don't want to sit on that & pay prop tax for years. Might just pull that money out & roll it into some repairs/reno on some of our other properties and offset it that way.

Really smooth process.

I did one recently. Happy to answer any questions through DM