I'm selling some single family homes and would like to 1031 into a park, but as I look through the timelines, it seems impossible to make everything work on a park purchase. Anyone have any input on how to order things to make them more manageable?
Since the right park seems hard to find, It seems wise to find a solid park first, do some diligence first to confirm that I want to pull the trigger, and then proceed with selling the rentals (Since I have 45 days to select the new property after i close on the first property).
Here's the way I figure the events have to go to not have to either eat a lot of rent for vacancy in the process or sell too far ahead of finding the right park:
Day 1: Select a MHP, Put in contract, begin DD (Generally 90-100days to close on a MHP, right?)
~Day 14: I should pretty solid on the park by now. Give 60day notice to tenants once I've done enough DD on the MHP to commit. (2609 Only one rental would require 60days. The others have been tenants <1yr, so 30 days will do.)
~Day 30: Apply for financing on MHP (60 day process?) - It seems like this is our first tight spot: The MHP bank would probably require cash in the bank at this point. Not sure if they would tolerate the homes being in process of closing
~Day 44 Tenants are out of First property. List it for sale.
Day 74-ish: Last tenants are out of the last property. List it for sale.
Day: 125 Last property COE (The properties would likely sell quickly because they're in a good area with low inventory).
Worst case it all turns to a taxable sale, which is not terrible, but I'm wondering if I could rearrange things to make this flow more quickly? Thank you, everyone!