Today’s question comes from Mike in Pennsylvania. He writes:
Thank you for your daily podcast! I find your show format insightful and your perspective extremely helpful.
Our family has decided to sell a vacation rental we own on the coast of North Carolina that we purchased almost ten years ago. The market there is extremely hot right now and we are ready to exit at this time for several reasons.
We expect to sell for almost triple what we paid in 2013, which will leave us with a sizable capital gain tax bill unless we find a tax-favorable alternative way to invest the proceeds. I am concerned we may not be to able find and close on a new property for a 1031 tax exchange fast enough.
Any thoughts on 1031 or opportunity zone funds? How would you consider handling this?
As always…I look forward to hearing you on the Real Estate Expresso podcast!
Mike. First of all, thank you for the kind words, and this is a great question.