Posted on 07/28/2010 5:49:29 PM PDT by Chickensoup
Depending on the amount of equity you are realizing and you intended goals should set you course of action. A NNN trade, a reverse exchange, paying capital gains prior to 2011, your depreciation recapture expense on top of capital gains, etc.
There are some high cap rates for lower-tiered chains (fast food franchises, oil changers, day care centers, other retai) or apartment, medical office or mixed-use properties.
There are some good buys, but remember cap rates, intrinsic value of location and certainty of cash flow dictate price.
No I am just a poor chicken
Either a 4 or five unit in the area
PLanning to dump the whole thing into a trust for the kids.
Unfortunately, you may be in a situation where you have no choice but to exchange.
Perhaps you could rent a couple of the new units to ACORN at inflated rates and get some of that TARP money back...
Not sure how, or if a 1031 applies to commercial properties, but for residential, (in Ga), a 1031 applies to your primary residence only.(No rental, vacation or rehab/flipper properties). Keep all receipts for repairs, upgrades, property taxes and other expenses to offset your capital gains. If your investment property is in an LLC or S Corp, or other entity, there are other rules & options that apply.
Consult with a GOOD Real Estate oriented CPA. They may be somewhat expensive, but worth every penny if they know what they are doing.
I dont mind exchanging, I just want to have what goes in, coming out.
Yep...........Not nearly as easy now as it used to be.......
Tulip bulbs, go with the tulip bulbs.
Tulip bulbs, go with the tulip bulbs.
Nah, I am going with pet rocks and beanie babies
Tulip bulbs, go with the tulip bulbs.
Nah, I am going with pet rocks and beanie babies
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