Posted by Sailor on May 22, 2007 at 17:20:25:
Gordon, you need a good RE CPA to advise you on taxes. I’m not
sure what you mean about creating mobile home notes. I do it in
another part of the country, but I own the land. I can’t advise you
on Calif. & nobody here has a crystal ball. What is true for SFH
may not hold for apts or commercial.
It sounds like it would be worth exploring doing your 1031
(maybe a reverse) in an area that is appreciating or @ least
holding its own. Personally, I would choke over the tax hit & try
to use the opportunity to delay it (post-mortem is my plan). If
nothing else, use the 1031 to buy your retirement property as a
rental & then convert the use later. Check on the time limits, but
you could later re-fi & pull out $$$.
Your seller may not be as cooperative as you think. He’s grousing
a bit, but I’m pretty sure he has mentally spent your $$$. That
doesn’t mean you can’t cancel, but it may not be that easy.
Note that there is $$$ to be made in any mkt, but you need to
make it on the buy, & not bank on appreciation kicking in.