The median price for a single-family home on Oahu in 2013 was $645,000, and with low inventory, the price of real estate continues to increase. However, there are some great opportunities out there for homeownership under the island median...Here's a sample of affordable single-family homes available on Oahu for under $645,000.

116B Cypress Avenue, Wahiawa, HI 96786

MLS #: 201333030

$370,000 

• 3 Bedrooms
• 1 Full Baths
• 1,211 Square Feet

Lovely older home, newly renovated with laminate flooring, carpet, paint inside and new stove. The house is in great condition but sold AS IS. This is a wonderful price for a starter home. Come and see. You won't be disappointed. Square footage of home differs from tax office. Please call for Addendum A before making an offer. Click here for map. Property listed by Century 21 Homefinders Of Hi

In my last three blogs of this four part series, we went over the Benefits of a 1031 Exchange - Part I, Different Types of 1031 Exchanges - Part II, and The Middleman to Complete a Successful Exchange - Part III

In this last segment, I would like to elaborate on a 1031 Exchange question I’m asked often, “Can I complete a 1031 Exchange with a vacation home or second home?”

And the short answer is yes.

Here’s what you need to know about exchanging mixed-use vacation home.

In 1981, the IRS issued a Private Letter Ruling (PLR) stating that you could 1031 Exchange out of a vacation rental and into another investment property if it was held as an investment as well as personal enjoyment. 

In 1991, the Department of Treasury issued the Deferred Exchange Regulations that went against the IRS's PLR. It stated that an Exchange must be held for investment only and not as a second home or vacation rental with the ability to use it for personal use. 

During this time, it was extremely confusing determining if a vacation rental or second home would qualify for a 1031 Exchange. 

Finally, in 2008, the IRS issued a Revenue Procedure clarifying the guidelines for qualifying a vacation rental or second home for a successful 1031 Exchange.

A Night To Remember with Hapa

Na Hoku Award Winning Group Hapa, performing live at the Crown. A Valentine's Day dinner show and “A Night To Remember“ with Chef Les Tomita of Da Kitchen “presents“ an eight course tapa dinner.

For more information please visit their website, email or call (808) 688-4624.

Friday, February 14, 2014 from 6:00pm - 10:00pm

The Crown Bar and Nightclub
1837 Kapiolani Bvd
Honolulu, HI 96826