Real estate home values make sense for investors because rental prices are extremely high. This has created a truly amazing “perfect storm” for wealthy individuals around the country that have taken advantage of the 10%+ ROI Program in the Orlando area. In turn, it’s easy to see why investors all over the nation have been flocking to this special area of the country where investing in real estate can be done as passively as putting your money in a CD at your bank, yet the returns can be much higher.
People are migrating to Florida from all parts of the country at a rapid rate. Therefore, I am seeing a lot more investors looking for ways to find properties to exchange for their investment properties in other states.
The most beneficial way to do this is to use a 1031 exchange. Thus, avoiding the burden of paying a lot of taxes in capital gains.
You might be asking what a 1031 exchange is. A 1031 exchange is a tax break. You can sell a property held for business or investment purposes and swap it for a new one that you purchase for the same purpose, allowing you to defer capital gains tax on the sale.