I have a paided off house worth 320k that i would.like.to use as a.downplayment on an underperforming apartment. Where would i start.looking.for potential deals.like.this?
What you want to do is sell your property and explore whether a 1031 exchange works for you, if your looking to put say $50k in cash in a reserve account then a 1031 will not work as a 1031 requires you to use 100% of the proceeds toward the purchase of a new property.
For $250k you will probable be able to acquire a $1m dollar apartment property some where in the 15 to 30 unit range. For that matter you could acquire almost any commercial type property worth around $1m.
As an investor we would only value your $320k property at $225,000 in good re-sellable condition as taking the property say in trade (For Down Payment) requires closing cost’s, debt service or cash on cash returns and payment of insurance, taxes and incidental upkeep of landscaping, and utility payments every month until we could resell the property, and then realtor fee’s will be 6%.
No, you need to sell your property and then purchase an investment property that preserves your position and provides some income and tax write off’s!