How do you sell a Mount Washington rental property in a 1031 exchange?

1. Meet your CPA or tax attorney first. Your attorney or CPA handles this part, and I work alongside them.
2. Select a QI and sign its agreement before closing.
3. Get a property-specific home review of the rental.
4. Assemble the due-diligence file (below).
5. Start shopping for the replacement property early.
6. List and choose a buyer whose financing and timing are dependable.
7. Add the cooperation language your QI supplies to the purchase contract.
8. Close, with proceeds going to the QI.

Less than it sounds. The IRS gives 45 days from the sale to identify replacement property in writing and 180 days to close, or the tax return due date if earlier. Your CPA and QI track these.

Decision point: if the property you want to buy is scarce, a later closing on the Mount Washington sale can create room.

Occupancy, the slope, fire-zone upkeep and what they can build.

Due-diligence file:

• ☐ Current leases, rent roll and deposits
• ☐ Rent Stabilization Ordinance status (LAHD says the RSO generally covers units first built on or before October 1, 1978, subject to exemptions)
• ☐ Permits for each unit and any conversions
• ☐ Residential Property Report status: LADBS requires City home sellers, with some exceptions, to give the buyer a Residential Property Report ($70.85 per report as of October 27, 2026); a report issued in the last six months can be reused, so check with LADBS before ordering.
• ☐ Brush clearance records if ZIMAS shows the parcel in the fire zone
• ☐ Insurance declarations and loss history
• ☐ Utility and repair expenses for the past year or two

It shapes what a buyer could add or rebuild, which they price in, but the rules for any project must be confirmed for the individual lot. For one-family homes the plan text sets floor area from 0.5:1 on lots under 5,000 square feet down to 0.27:1 at 20,000 square feet or more, with a 45-foot height limit. For multi-family properties in R2 or less restrictive zones, and C zones, Section 7 calls for a Project Permit for covered work; interior remodeling that adds no floor area is not subject to the Section 7 standards, though other permits may apply.

On income and on the land. Buyers look at rents and expenses, then at the lot, view, parking, access and condition, plus any tenant rules. I prepare comparable sales and the rent roll side by side.

As of October 27, 2026, a City of Los Angeles sale carries County transfer tax of $1.10 per $1,000 and City transfer tax of $2.25 per $500; for closings after June 30, 2026, Measure ULA adds 4% on the full price above $5,400,000 and under $10,900,000, or 5.5% at $10,900,000 or more. Escrow confirms the exact amount and any exemption. Escrow, title, QI fees and commission are additional; your tax adviser explains how they're treated.

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.

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

Related guides: selling a Mount Washington home when relocating · selling an inherited house in Mount Washington · selling a house in Mount Washington · 1031 exchange sales in Highland Park.