A 1031 exchange refers to the Internal Revenue Code, Section 1031. This code allows you to defer capital gains taxes from the sale of a property by “exchanging” it for another property of equal or greater value. A 1031 exchange is also known as the like-kind exchange. But what happens if you live in a large city and the market isn’t ideal or profitable? Can you use a 1031 exchange out of...

The IRS has authorized deadline extensions for taxpayers with 1031 exchanges that have been or may be impacted by Hurricane Ian. This affects taxpayers doing 1031 exchanges anywhere in the states of Florida, North Carolina, or South Carolina (“Disaster Area”). This extension applies to investment property sold, identified as a potential replacement, or purchased as part of a 1031 Exchange in any...

Are you interested in deferring your taxes when you transition between investment properties but don’t want to roll all of your cash proceeds forward into your replacement property? Don’t be put off by the cash reinvestment requirement of a 1031 exchange. Cashing out is possible, but the “when” and “how” can make a huge difference.  With some advanced planning, it may be possible...

When investing in real estate through a 1031 exchange, many investors start with single-family, multifamily, or commercial properties. Each of these property types is a tried-and-true investment option with the potential to produce a substantial return. However, are they able to hold their own when facing a recession or (as we recently experienced) a global pandemic?  During the peak of the...

This article is presented by Kay Properties & Investments. Read our editorial guidelines for more information. There are a number of potential benefits associated with exchanging into a Delaware Statutory Trust (DST) 1031 property.  However, it is important to note that these potential benefits should also always be carefully weighed with the potential risks that are...

The BRRRR strategy for real estate investing looks like the traditional rental property investment method and seems pretty straightforward. Investors buy a flip property, fix it up, rent it out, go to a bank, get a refinance, and rinse and repeat. But, of course, it isn’t quite so simple. Let’s do a quick BRRRR analysis to see if this strategy might be right for you. What does BRRRR...

Many investors have fast-tracked their real estate business with the BRRRR real estate strategy. BRRRR stands for buy, rehab, rent, refinance, repeat, and it is a great way for investors to earn passive income. It’s a method by which real estate investors buy distressed properties, but the difference is the intention to keep them as rental properties instead of selling...

Outside of perhaps David Greene, I have been arguably the biggest proponent of buy, rehab, rent, refinance, repeat—otherwise known as the BRRRR strategy. The BRRRR strategy has been very good to me and many others, but alas, my dear friends, all good things must come to an end. OK, the word “end” might be a bit hyperbolic here. The BRRRR strategy is by no means completely...

If you’re buying a home, there are many things you need to figure out before you make the leap to homeownership. A big obstacle to consider when you want to buy a house is your down payment. The amount you need to put down on the house depends on several factors.  We’ve created this guide to help you understand how down payment requirements affect your mortgage payments and how much...

The hardest part’s over because you’ve found the perfect house. Now you have to go through negotiations to buy the house and determine your closing costs. Closing costs are expenses in the home-buying process that typically equal 2% to 5% of your loan’s value, which can make them very pricy if you’re buying an expensive property. Borrowers might be able to reduce closing costs with the...