Dec 15th closing meaning that you closed escrow on your 5 plex on June 15th ?
Paying the income tax is throwing away $200K FOREVER.
Buying in CA is not your only option. For a full 1031,
You will probably need to purchase a property of equal (or greater) value, AND carry the same amount of debt that you had on what you sold.
Although you stated your selling price, what was your final amount of debt, and how much cash do you now have ??
Buying a $1.5M+ multi unit residential complex out of state in a stable market can bring you a cap rate of 10%++
With $800K in cash, depending on the rest of your financial picture, I would consider properties in the $2.5m range with 30% down. The gross rents could easily be in the range of $20,000-$25,000 per month and your adjusted depreciation would be huge, carried forward if not needed at this time
and providing you with an excellent stream of income.
If you are looking for long term gains AND don’t need the cash, I cannot fathom why anybody would recommend paying Uncle Sam $200K and walking away with the cash.
Conservatively, that $200K would be 40% down on a $500K building, still providing you with great net income that would be ZERO from $200K paid in taxes.
