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Author: UhuruPeak One star, 50 posts Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 121150  
Subject: Re: Converting Investment RE Date: 3/8/2002 1:47 AM
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Hello,


Another question on 1031...
Say I buy a house $100,000 with 10% down plus $5,000 of closing costs+fees+misc

I sell it $120,000 less $10,000 closing cost, and want to do a 1031 exchange.

Do I:
1. need to find one property for a total loan of at least $120,000
2. need to find one property for a total loan of at least $110,000 (the amount I had pocketed from the sell after fees deducted
3. need to find one property for a total loan of at least $20,000 (down payment plus costs at buy time + profit)
4. need to find one property for a total loan of at least $5,000 (the profit I made on the first operation)
5. need to find one property for a total loan of at least $0, assuming the costs at buying time are equal to my profit

I could find other possibilities, these are just the most likely I can think of. I'm hoping for a "4." answer, and would really hate a "1." answer.

Also, I can use the 1031 to buy more than one property, right? ie, in case of solution "1." being true, buy 2 properties at $60,000 each?

Thanks for any answer. I'm not thinking of selling yet, I am currently closing on a fixer upper. Just trying to think (a little) ahead of time.

UhuruPeak
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