FOR INVESTORS

1031 Exchanges and Remote Investing in Brevard County, Florida

Buying investment property from hundreds or thousands of miles away can feel like a leap of faith. It does not have to. With the right local partner, you can find, tour, buy and set up a rental on Florida's Space Coast without ever getting on a plane.

I have guided investors through about a dozen 1031 exchanges, so I know firsthand how tight the deadlines are, what questions to ask, and how to keep a remote purchase moving. Let's walk through how it works.

Debbie Strawhand, Real Estate Advisor, Avanti Way Realty

The Space Coast offers something many markets cannot: a growing, diverse local economy with coastal living and a range of property types in one county.

•       A strong employment base. Aerospace, defense, technology, healthcare and manufacturing employers, including L3Harris, Northrop Grumman, Health First and the companies around Kennedy Space Center.

•       No state personal income tax. Florida does not tax personal income, which can help your overall return.

•       A range of price points and property types. From single-family rentals to small multifamily, across Melbourne, Palm Bay, West Melbourne, Rockledge, Cocoa, the beaches and more.

•       Coastal appeal with room to grow. Beaches, the Indian River Lagoon, and about an hour to Orlando.

Every property is different, so we look at the actual numbers for each one: rents, taxes, insurance, association rules and condition, rather than relying on general trends.

My investor work focuses on residential income property of one to four units:

•       Single-family rentals (houses, townhomes and condos)

•       Duplexes

•       Triplexes and fourplexes

Properties with five or more units are commercial real estate, with different financing and valuation. I handle commercial sales and leasing as well, so if you are exchanging into a larger multifamily or commercial property, we can talk about that too.

A 1031 exchange, named for Section 1031 of the Internal Revenue Code, lets you sell an investment property and defer capital gains taxes by reinvesting the proceeds into another "like-kind" investment property. For real estate, like-kind is broad: a rental house in another state can generally be exchanged for a duplex in Florida, for example.

The key rules

•       Both properties must be held for investment or business use. Your primary residence does not qualify.

•       A qualified intermediary holds your sale proceeds. You cannot take possession of the money between the sale and the purchase, or the exchange can fail.

•       To defer all of the tax, you generally need to buy property of equal or greater value and reinvest all of your net proceeds. Cash or debt reduction you keep, often called "boot," may be taxable.

The two deadlines

•       45 days: From the day your original property closes, you have 45 calendar days to identify replacement properties in writing.

•       180 days: You must close on the replacement property within 180 days of that sale, or by your tax return due date if that comes first.

These deadlines are strict and are generally not extended for weekends or holidays. Most investors identify properties using the "three-property rule," which allows you to name up to three potential replacement properties regardless of value. Your qualified intermediary can explain the other identification options.

Important: I am not a tax advisor or attorney. Every exchange should be structured with a qualified intermediary and your CPA or tax attorney. My role is to help you find, evaluate and close on the right replacement property on time.

The 45-day identification window is where most exchanges get stressful. The best way to handle it is to start early. Here is how we work together:

1.      Start before your sale closes. Once your original property is under contract, we begin searching Brevard County so you are not starting from zero on day one.

2.      Define your targets. We talk through your price range, property type, rent goals and how hands-on you want to be.

3.      Build a short list. I send options with photos, video and my own notes on condition, location and likely rent.

4.      Run the numbers. We estimate rent, taxes, insurance and expenses for each property so you can compare them side by side.

5.      Identify with confidence. You name your replacement properties on time, with backups, and I coordinate with your qualified intermediary and title company through closing.

Many of my investor clients never visit before closing. Here is what the process looks like from anywhere in the country:

1.      Let's chat. We talk about your goals, budget, timeline and whether a 1031 exchange is involved.

2.      Financing. If you are financing, I can connect you with local lenders who understand investment property loans.

3.      Video tours. I tour properties for you live on FaceTime or WhatsApp, or record detailed video walkthroughs you can watch on your own schedule. You see what I see, including the things listing photos leave out.

4.      Offer and contract. Offers and contracts are signed electronically, so distance never slows us down.

5.      Inspections and insurance. I coordinate inspections and share the results with you, and I can refer you to local insurance agents for quotes early in the process.

6.      Closing from wherever you are. The title company can arrange a notary at your location, so you can sign your closing documents without traveling to Florida.

7.      Setting up your rental. After closing, I can refer you to property managers, handymen and contractors to get the property ready and rented.

When you invest from out of state, the people around the property matter as much as the property itself. I can connect you with trusted local:

•       Lenders experienced with investment property financing

•       Property managers

•       Handymen and contractors for repairs and turnovers

•       Insurance agents who understand Florida wind and flood coverage

•       Title companies experienced with 1031 exchanges and remote closings

You get one point of contact who knows the area and keeps everyone moving on your timeline.

Florida has some costs that surprise investors from other states. We build these into every analysis:

•       Insurance. Homeowners, windstorm and flood coverage can be a major expense. Roof age and wind mitigation features affect both cost and availability.

•       Property taxes. Taxes are reassessed based on the purchase price after a sale, so the seller's current tax bill is not a reliable guide. Florida limits annual assessment increases on non-homestead property to 10 percent for most non-school taxes.

•       Association rules and fees. HOA and condo associations may limit rentals, set minimum lease terms, or charge assessments.

•       Short-term rental rules. Vacation rental rules vary by city and community. We confirm what is allowed before you make an offer.

•       Management, maintenance and vacancy. Budgeting for these up front gives you a realistic picture of your return.

Andrew G (out of area investor) – Palm Bay, Melbourne, Merritt Island, Deltona - Seller/Buyer/Investor

“…her work is her passion”

We have had the pleasure of working with Debbie on multiple buy and sell transactions. Debbie is the most knowledgeable, responsive, and trustworthy agent we have done business within many years. She is the agent you want on your side if you're buying or selling real estate. She shines every time, and her work is her passion. Thank you Debbie.

Patrick G (out of state investor) – Income Property Single Family Home – Melbourne – Rockledge Area – Investor / Buyer

“She worked tirelessly to help me find what I was looking for.”

I wanted to buy an investment property (a rental) close to the beach on Florida's Atlantic coast. Not knowing anyone in that area, it was by the grace of God I found Debbie Strawhand. She listened and understood. She worked tirelessly to help me find what I was looking for. If I saw an interesting property on Redfin or Zillow she would go there and make a narrated video walk-through, sometimes within the hour. She knows the area and was able to give me sound advice. She connected me with a lender, a title insurance company, and a property manager. I did the whole thing long distance, sight unseen, and the transaction was further complicated because it was a 1031 swap. When I had questions, she had answers. Even when it was a question that really should have been addressed to one of the entities just mentioned I relied more on her because she was always the one, I could count on to reply with the correct answer in a timely way. I can recommend her highly without hesitation to anyone interested in buying in the Satellite Beach or Melbourne area. I could go on, but I realize this is just a review, not an entire book, so I'll just sum it up: “I wanted to buy an investment property (a rental) close to the beach on Florida's Atlantic coast. Not knowing anyone in that area, it was by the grace of God I found Debbie Strawhand. She listened and understood. She worked tirelessly to help me find what I was looking for. If I saw an interesting property on Redfin or Zillow she would go there and make a narrated video walk-through, sometimes within the hour. She knows the area and was able to give me sound advice. She connected me with a lender, a title insurance company, and a property manager. I did the whole thing long distance, sight unseen, and the transaction was further complicated because it was a 1031 swap. When I had questions, she had answers. Even when it was a question that really should have been addressed to one of the entities just mentioned I relied more on her because she was always the one, I could count on to reply with the correct answer in a timely way. I can recommend her highly without hesitation to anyone interested in buying in the Satellite Beach or Melbourne area. I could go on, but I realize this is just a review, not an entire book, so I'll just sum it up: She's the best.”

Can I do a 1031 exchange from a property in another state?

Yes. Like-kind exchanges are not limited by state. Many of my clients sell investment property elsewhere and exchange into Brevard County.

Can I exchange into more than one property?

Yes. You can split your proceeds across multiple replacement properties, such as two single-family rentals, as long as you follow the identification rules and deadlines.

Do I need to visit before I buy?

No. Between live video tours, recorded walkthroughs, inspection reports and remote closing, many investors buy without visiting. You are always welcome to come see the property, of course.

Can a vacation rental be part of a 1031 exchange?

Possibly, but property used partly for personal stays has special rules, and local rental ordinances vary. Talk with your tax advisor, and I will help you confirm what the city and any association allow.

Can you also help me sell a Brevard investment property as part of an exchange?

Yes. I can list and sell your Brevard County investment property and help you find the replacement, so both sides of your exchange stay coordinated.

Whether you are starting a 1031 exchange, adding to your portfolio, or buying your first rental, let's plan a time to chat about investment options in Brevard County, FL. We will talk through your goals, timeline and budget, and figure out the next steps together.

Let's plan a time to chat: call or text 321-317-8241, or email dkstrawhand@gmail.com.

Debbie Strawhand, Real Estate Advisor

Avanti Way Realty  |  2825 Business Center Blvd, Suite A1, Melbourne, FL 32940

321-317-8241  |  dkstrawhand@gmail.com  |  DebbieStrawhandSellsFLHomes.com

Florida Real Estate License SL3375202

The information on this page is general in nature and is not legal, tax or financial advice. 1031 exchanges have strict requirements; consult a qualified intermediary and a CPA or tax attorney about your specific situation. Laws and market conditions change; information is believed accurate as of the date posted.

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