Identification strategies that protect your exchange
The IRS allows three identification rules: the three-property rule (identify up to three properties of any value), the 200% rule (any number of properties up to 200% of your relinquished value), and the 95% rule. Most exchangers use the three-property rule and identify one primary target plus two backups.
Always identify backups. If your primary deal falls through on day 150, a written backup identification is the only thing standing between you and a taxable gain.
What makes a replacement property easy to close
Inside a 180-day window, certainty beats upside. Lenders move fastest on stabilized assets with documented income, and sellers of leased properties can provide estoppels and rent rolls quickly.
- Tenant in place with a current, documented lease
- Clean title and simple ownership structure (fee simple preferred)
- Recent financials, rent roll, and estoppel available on request
- Price point your financing can support without a lengthy appraisal dispute
Why Florida — and why Naples
Florida has no state income tax, strong population in-migration, and landlord-friendly law. Within Florida, Naples offers Class A product at price points between $1M and $3M that fit many exchange budgets — large enough to matter, small enough to close quickly.
A current example: Suite 200 at 599 Tamiami Trail N
This fully built-out executive office condo in the heart of Old Naples is offered at $1,500,000 with a 4.67% cap rate and $70,000 in net operating income. The tenant is in place on a lease running through 2029, so a buyer steps directly into stabilized income with no lease-up risk.
Fee-simple title, a prestigious downtown address, and a turn-key buildout make it a clean, quick close — important for anyone working inside a 1031 exchange timeline or placing capital before year-end.