Posted by Rich-CA on May 13, 2007 at 19:26:24:
The thing about a 1031x is that you would have to sell the house - which you said you are reluctant to do. If you do a 1031x and the value of the replacement properties is less than the one you sold, the difference is taxable income. Personally, I would sell in a 1031x, and go to several lower cost properties, spreading the rent. You will find that the rents don’t drop as fast as the property price (more expensive properties typically rent for proportionately less per dollar of purchase price than less expensive properties). By having multiple properties, you make the impact of a vacancy less.