Residential Property 1031 Exchanges

Qualifying Residential Investment Properties

The key distinction is between your primary residence and investment property. A home you rent out to tenants qualifies; a home you live in does not. Mixed-use properties may partially qualify.

• Single-family rental homes
• Duplexes, triplexes, and fourplexes
• Small apartment buildings (2–4 units)
• Vacation rentals held for investment
• Land held for future residential development

Primary Residence vs. Investment Property

If you've lived in a property and also rented it out, the rules become more complex. The IRS looks at the ratio of personal use to rental use, and there are specific safe harbor rules for vacation rentals. We can help you determine if your property qualifies.

Upgrading Your Portfolio

Many residential investors use 1031 exchanges to consolidate multiple single-family rentals into a larger multi-family building, or to transition from residential to commercial real estate. This 'trading up' strategy is one of the most powerful wealth-building tools available to real estate investors.