1031 and carrying back a note?

General Real Estate Investing
1

I have a property which I purchased via a 1031 two years ago. It has appreciated considerably and I have about 60% equity. The tenant wants to buy it. I am thinking about carring back a sizable second because it would provide provide some nice passive income. I am wondering if it is going to be possible to 1031 again or will I lose my ability to 1031 if I do the financing? There is quite a bit of capital gains tax potential from this and the predecessor.

TIA

Randall

2

Randall,
Opinion only: I would do one or the other. I believe you could build a book-keeping nightmare which will get worse in future years while the return is diminishing.
You have a great opportunity for cash flow with a mortgage or fantastic equity accumulation with a 1031.
Either is easy to do. Opinions, everybody got 'em.
Good luck,
Ray