Can I buy multiple replacement properties in one 1031 exchange?
Yes. You can use the proceeds from one sale to acquire several replacement properties in a single exchange, as long as you properly identify them by day 45 and close on all of them by day 180. To fully defer tax, the combined value and debt of everything you buy generally needs to equal or exceed the property you sold.
This is a common way to diversify — for example, trading one large building for two or three smaller rentals, or a mix that includes a passive DST or triple-net property.
The identification counting rules still apply to how many you can name; see how many properties you can identify. Any value you don’t reinvest becomes taxable boot.
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General education — not tax or legal advice. This explains how §1031 exchanges work in general terms and uses simplified assumptions. Rules and tax rates change and your situation is specific. Talk to a qualified CPA or tax attorney before you rely on any of it. See our full terms & legal notice.