1031 Exchange Investment Property

At 1031 Federal Exchange, we have spent over 20 years helping investors navigate the complexities of tax deferral. We have facilitated every type of transaction imaginable—from modest single-family homes and million-dollar agricultural farms to complex hotel projects and urban parking garages. Whether you are looking for active management or a passive monthly paycheck, the right 1031 exchange investment property can be the engine that accelerates your wealth.

The Foundation: Timelines & Like-Kind Rules

To successfully defer your capital gains, you must adhere to the two non-negotiable IRS timelines:

• 45-Day Identification: You have exactly 45 days after selling your property to identify your replacement assets in writing.
• 180-Day Completion: You must close on your new property within 180 days of your initial sale.

The beauty of the 1031 exchange is the broad definition of “Like-Kind.” Many investors mistakenly think they have to trade an apartment for an apartment. In reality, any real estate held for productive use in a business or trade is like-kind. Because we deal with these all the time, we can help you swap a warehouse for a strip mall or a golf course for a self-storage facility without missing a beat.

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Diverse Commercial & Residential Opportunities

Depending on your goals—whether it’s cash flow, appreciation, or retiring from “landlording”—certain property types offer unique advantages.

1. Residential: From Single-Family to Large Apartments

• Single-Family Homes: These offer the easiest entry point and high liquidity. Perfect for investors who want an asset that is easy to sell later to a traditional homeowner.
• Apartment Buildings: Scaling into multi-family (from a duplex to 50+ units) allows you to have multiple tenants under one roof. This reduces your risk; if one unit is vacant, the others still cover your mortgage and expenses.

2. Specialized Commercial Assets

• Gas Stations & Convenience Stores: These are high-yield assets often situated on prime corners. They provide steady cash flow and are frequently used in 1031 exchanges for investors looking for “essential service” stability.
• Golf Courses: We facilitate large-scale recreational exchanges. These occupy massive tracts of land, offering both operational income and significant long-term land value appreciation.
• Hotels & Motels: A hospitality exchange allows you to move into the “business of beds.” These are operationally intensive but can offer some of the highest returns in the commercial sector.
• Nursing Homes & Senior Housing: With an aging population, these are recession-resistant assets. They provide specialized medical-grade real estate that serves a critical social need while producing reliable income.

3. Industrial & Infrastructure

• Warehouses: The backbone of e-commerce. Warehouses are “low-touch” assets with long-term tenants, making them ideal for investors who want to scale without a high management burden.
• Self-Storage Units: These are incredibly resilient. They often thrive in both up and down economies and have very low maintenance costs compared to residential rentals.
• Parking Garages & Lots: In dense urban areas, a parking lot is a “money-making machine” with almost no structural maintenance required. It is an excellent way to hold land for future development while generating immediate cash.

4. Retail & Office Space

• Shopping Centers & Strip Malls: Diversify your risk across multiple commercial tenants. From local dry cleaners to national grocery anchors, retail centers allow you to benefit from the growth of local economies.
• Office Buildings: From suburban medical offices to urban high-rises, office space remains a staple of the 1031 exchange world, particularly for those looking for professional, long-term corporate leases.

5. Land, Farms & Vacation Rentals

• Raw Land & Agriculture: Whether it’s a million-dollar farm or land held for speculation, these require zero management while they appreciate. We help farmers consolidate or relocate operations across state lines constantly.
• Vacation Rentals (Airbnb): You can eventually turn these into a primary residence. After holding the property as a rental for at least two full years (the “Safe Harbor” rule), you can move in, effectively turning your investment into your home.

6. Passive Powerhouses: DSTs & TICs

• Delaware Statutory Trusts (DSTs): If you are done managing “tenants, toilets, and trash,” a DST lets you own a share of a huge Amazon warehouse or a luxury hotel. You get monthly/quarterly checks without lifting a finger.
• Tenant in Common (TIC): A TIC allows you to own a fractional interest in a larger property. It’s a great way to “right-size” an exchange if you have leftover cash that isn’t enough to buy a whole building but is too much to pay taxes on.

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Which Property Fits Your Strategy?

We are here to help you structure these moves. Because we handle every property type from parking lots to nursing homes, we know how to ensure your exchange remains 100% compliant.