From: "Jim in AZ" 
Newsgroups: alt.invest.real-estate alt.invest.real-estate.methods alt.real-estate alt.real-estate.rentals alt.real-estate.rentals.homex
Subject: Re: What to do with my Rental Property?
Date: Tue, 15 Feb 2005 08:35:18 -0700

"Bill Kilgore"  wrote in message 
news:fwbQd.21239$DG5.12444@lakeread07...
>I need to get some of your opinions on how to handle this issue
>
> Here's the story:  I have owned a townhouse for around (18) years and paid 
> 130k for it .  We moved out (5) years ago and rented it out.  Since that 
> time real estate values have risen and it is worth around 350K.  We are 
> thinking of selling it and needs some ideas on what to do with the capital 
> gains.  Here's a couple of ideas we have had:
>
> Do a like-kind exchange for a beach house rental.

You can do a 1031 and buy 2 or more properties - a beach house and another 
rental for example.

> Take the profit, pay the capital gains taxes, and used the rest to pay off 
> our current house.

You might be better off to keep the money working for you if you don't need to 
lower your expenses.

> Take the profit, pay the capital gains taxes, and invest the profit in the 
> stock market.

Much better than real estate for some people. Your choice.

Jim