1031 Exchange Extension & Major Section 8 Voucher Increases
Unprecedented 1031 Exchange Deadline Extension
While some may already know, I was reminded this week by one of my main exchange accommodators that the IRS has passed an unprecedented deadline extension for 1031 exchanges for many California residents.
Due to the winter storms in December 2022, the IRS issued a very generous extension period for those who reside or do business in Los Angeles and many of the surrounding counties.
Typically, when you close your downleg property, you are given 45 days to identify your potential upleg properties, and 180 days to close on them. With this extension, you now have until October 16th, 2023 to both identify AND close on your replacement property.
What does this mean for you? With much of the typical timing-related stress relieved, this extension makes 2023 one of the best years in history to tackle a 1031 exchange (market conditions aside). If you've considered a 1031 in the past and want to discuss your situation further, give us a call and we'd be happy to strategize on your options.
You can learn more in the following IPX1031 Article.
*Please consult with your CPA first to ensure that you qualify for the IRS extension.
Section 8 Increases Rent Payouts in Pricier LA Neighborhoods
The Housing Authority of The City of Los Angeles (HACLA) approved an increase to certain rental voucher amounts that could cover almost $3,000 for a 1-bedroom unit in LA's priciest zip codes.
This program is called Small Area Fair Market Rents (SAFMRs), and it applies to families and individuals participating the Housing Choice Voucher program. Most landlords, tenants and housing authorities see this new program as an all-around win.
The SAFMR Voucher Payment Standards are broken down by zip code on HACLA's website here.
Weekly Market Activity – WeHo, Beverly Grove, Pico-Robertson, Fairfax, Mid-City
90019, 90035, 90036, 90046, 90048, 90069
4/28/23, Last 7 Days
New Listings:
1510-14 S Cochran Ave [90019] - 12 Units for $3.15M, $262K/unit, 5% Cap, 13.8 GRM, $343/sf (1957/2023)
4 units fully renovated, preliminary plans for 5 ADUs.
3066 W 15th St [90019] - 22 Units for $4.95M, 4% Cap, 13.93 GRM, $343/sf, $225K/unit (1964)
Mostly 2BR units, assumable $3.04M loan from 2021 at 3.35% fixed.
1632 S Bronson Ave [90019] - 4 Units for $1.68M, 4.35% Cap, 15.72 GRM, $434/sf, $418K/unit (1947)
100% renovated. Updated plumbing and electrical.
New Closings:
1470 S Sherbourne Dr [90035] - 6 Units for $2.26M, 4.05% Cap, 14.96 GRM, $400/sf, $376K/unit (1955)
Trust sale.
Considering offloading an apartment building, or curious about the value? You can request a complimentary valuation & intro call here.
Until next week... And as always, thank you for reading.
