CalculateRealEstateROI

Capital Allocation

1031 Exchange Strategy for Portfolio Reallocation

1031s let you recycle equity into higher-yielding markets tax-deferred — but identification windows and replacement rules eliminate sloppy execution.

Reviewed by Keiron Brown, Founder & Editor, CalculateRealEstateROI · Educational estimates only — not investment, financial, tax, or legal advice

Identification

Identification — 45 days, 3-property rule (or 200% rule) — pre-source replacements before listing.

QI selection

QI selection — pick a Qualified Intermediary that has cleared funds through a downturn.

Reverse 1031

Reverse 1031 — close on replacement first when timing favors the seller side.

Frequently Asked Questions

How is 1031 exchange strategy for portfolio reallocation measured?

We score it using cash flow, equity growth, diversification, and risk-adjusted return — the same factors our Investment Score uses across every calculator.

Where should I start?

Run the linked calculator with your current portfolio, then revisit this guide to action the recommendations one quarter at a time.

Published and reviewed by

Keiron Brown

Founder & Editor, CalculateRealEstateROI · Relationale LLC

5530 S. University Drive, 3212, Davie, FL 33328

Keiron Brown is the founder of Relationale LLC and the editor of CalculateRealEstateROI. He is a psychologist by training. He is not a real-estate broker, agent, appraiser, lender, accountant, or attorney, and nothing on this site is investment, financial, tax, or legal advice.

How these numbers are produced: This site publishes property-investment calculators and reference material. Every calculator states the formula it applies, and definitions follow standard industry usage rather than our own interpretation. What the tools cannot know is your deal — your financing, your market, your condition assessment, or your tax position. Methodology.

Last reviewed: by Keiron Brown. Pages carrying rates, tax figures, or market data are reviewed quarterly. Definitions and explanatory content are reviewed annually. Corrections are made promptly when an error is reported. Report a correction.