One of the many misconceptions is that you have to match the relinquished (sold) property with the new replacement (purchase) property. Because it is not necessary to match the property for quality or quantity, Exchangors may sell more than one old property and aggregate the funds to make the purchase of one new property.
We have represented clients that have sold as many as seventeen properties in one exchange and acquired one new property. By consolidating the investment the Exchangor benefits from simplified accounting, management and maintenance. It is important to match your “strike price”, that is, the sale price of the old property less closing expenses to the purchase price of the new property plus the acquisition costs. The goal is to always go even or up in value. To the extent that you don’t accomplish this, you may be subject to capital gains tax.