[Max]

I have about $140k of appreciation that I will have to pay capital gains on. Given that the property values have generally increased in my area (Atlanta), I’m wondering if I should do a 1031 into a new property or just take the proceeds, pay the capital gains, and invest in the equity/mutual fund market?

I’m leaning towards real estate if I can find a SFH that I feel like isn’t too overvalued and has room for appreciation while also receiving rental income.

I’ll be putting a big chunk down (~60%) given that the property I’m selling is paid off thus I’m not too too worried about the high interest rates.

Thank you all!

[Scott]

1031 would be ideal, but your just rushing into another property, and paying an elevated price.

[Tony]

Have you done a 1031 exchange previously? Just make sure you identify that new property and get it under contract (and close) within the short time frame.

I’ve seen some people run out of time, and then you have to pay the capital gains tax.

Don’t miss: I need to figure out what to do with a potential 300K from capital gain if I sell my rental property?

[Kevin]

Will you make more each month on another SFH?

It seems you’re trading one SFH for another and, in general, you likely won’t be making more especially with leverage payment.

But if you 1031 into a 2-4 unit you could significantly increase cash flow over a SFH.

[Amélie]

Depending on your net worth, you can also consider doing a lazy 1031, for example in real estate syndications.

[Author]

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