How do I sell a Lincoln Heights rental as part of a 1031 exchange?

1. Confirm with your CPA that an exchange fits your plans.
2. Engage a qualified intermediary before you accept an offer.
3. Open the parcel on ZIMAS and note the zone, any specific plan or design overlay, and the HPOZ if it applies.
4. Reconcile units and rents: permits, leases, deposits and any LAHD registration.
5. Get my opinion of value from comparable sales of similar properties.
6. Tell escrow about the exchange so the intermediary's documents are part of closing.

A lot, because zoning here varies block to block. The City's layers, queried November 5, 2026, show:

The specific plan (Ordinance No. 182,617) has its own use and development rules, and any exemption depends on the project; verify the parcel in ZIMAS and read the current plan text before you describe what can be built.

They might. LAHD says the Rent Stabilization Ordinance generally applies to rental properties first built on or before October 1, 1978, plus certain replacement units, and its coverage includes duplexes and two or more houses on one lot. Coverage is per unit, and new owners have registration duties, so have the buyer and your attorney check the address with LAHD.

• ☐ Rent roll, leases, deposits and any notices served
• ☐ LAHD registration records, if the RSO applies
• ☐ The LADBS permit record matched to the units on site
• ☐ The Residential Property Report, or LADBS confirmation of an exemption
• ☐ The intermediary's name and contact for escrow

From comparable sales of similar income properties, adjusted for unit count, rents in place, condition, parking and zoning. My home value review is an opinion of value, not an appraisal.

The usual closing costs, plus the intermediary's fees. LA County's documentary transfer tax is $1.10 per $1,000 of the sale price. Lincoln Heights is in the City of Los Angeles, which adds its own transfer tax of $2.25 per $500, plus Measure ULA of 4 percent on sales above $5,400,000 but less than $10,900,000 and 5.5 percent at or above $10,900,000 (the applicable ULA rate is calculated on the full gross value conveyed, not just the amount above the threshold); thresholds adjust each July 1. Your escrow officer shows how it and the county tax apply to your sale.

LADBS requires the seller of residential property in the City of Los Angeles to give the buyer a Residential Property Report before the sale or the close of escrow (LAMC Section 96.300; $70.85 per report as of November 5, 2026). The LADBS Form 9 application says no new report is needed for six months after one is issued, and it lists exceptions, including property exempt from the documentary transfer tax and the first sale of a home in a subdivision whose final map was recorded not more than two years earlier. Check your transfer with LADBS before ordering.

The amount or rate of real estate commissions is not fixed by law. They are set by each broker individually and may be negotiable between the seller and broker.

What to bring to your CPA or attorney: the purchase records, depreciation history, the escrow estimate, the intermediary agreement and IRS Form 8824 materials.

• How to sell a house in Lincoln Heights
• Selling an inherited house in Lincoln Heights
• Selling a Lincoln Heights home when you move away
• 1031 exchange sale services
• Investment property sale services
• Nearby: Highland Park 1031 exchanges and Glassell Park 1031 exchanges

Sidney Manzo, CA DRE #01108914
In real estate since 1990 · RE/MAX Hall of Fame · Member, Pasadena Foothills Association of REALTORS® and California Association of REALTORS® (C.A.R.)
Brokerage: RE/MAX Dream Properties (ASLG Inc), CA DRE #02142193