Subject:  Hello & question
From:  Paul Edmondson
Date:  Mon 13 Aug 2001

Hello,

I am hoping you might be able to help me.

I have a rental house in San Diego which I have owned since the early eighties. Current FMV approx: 220K of which I owe 130K.

I do not want to live there.

What I want to do is exchange for something that I do want to live in.

The way I understand it is I must exchange for equal or greater value and loan AND it must also be a rental for at least 1 year. Then I can move into it? Then I must live there for 2 years before selling?I'm I right in my assumptions?

Thank you for your help! If there is anything else you think I should know about this could you please tell me?

Also, where do I find a "facilitator"? Is that a specialized real estate agent?

Thank you very much!!

Paul Edmondson

Answer

Date:  17 Aug 2001

Hello Paul,

You have basically recited the "party line" for an exchange followed by converting the rental by exchange to a personal residence.

Since the exchange is being made "with a view" of converting the replacement property to a personal residence, having the exchange allowed can’t be guaranteed.

You should be able to get a referral for an accommodator through a tax advisor or commercial real estate broker in your area. Many title companies and some bank trust companies also offer this service.

Good luck!
Mike Gray

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