Real Estate: Florida/1031 exchange
I have two apartment buildings in Minnesota (Total value $1,350,000) and I would like to do a 1031 exchange into an apartment building in Florida.
My question: To do this I must purchase a property of equal or greater value.
Does this mean I must purchase a building
(1) greater than or equal $1,350,000
(2) after 6% sales commission I net $1,269,000
(3) There is a $430,000 mortgage on one of the Minnesota buildings so net after sale I have $839,000
So must I buy a building greater than or equal to $1,350,000 or $1,269,000 or $839,000?
That is a great question and thanks for your details.
The very best answer should come from the 1031 Exchange Intermediary. Are you familiar with this? The intermediary is the 3rd party that handles the sale or "exchange". You must use an intermediary to complete a 1031 Exchange transaction.
I am sure there are firms in Minnesota that can act as the intermediary.
I hope this points you in the right direction to get the most accurate answer.
Olde Town Brokers, Inc.