Yes, you can absolutely buy multiple properties with a single 1031 exchange. This is one of the most common ways investors diversify—selling one large "relinquished" property to buy several smaller "replacement" properties.

​To do this successfully, you must navigate three specific IRS rules for identifying those properties.

​1. The Three Identification Rules

​You must choose one of these rules to follow by Day 45. You cannot mix and match them.

  • ​The 3-Property Rule: This is the most common. You can identify up to three properties of any value. You can buy one, two, or all three.
  • ​The 200% Rule: You can identify an unlimited number of properties, but their combined total value cannot exceed 200% of the value of the property you sold.
    • ​Example: If you sold a building for $1M, you could identify ten $200k condos (Total: $2M).
    .
    • ​The 95% Exception Rule: You can identify as many properties as you want, even if they exceed 200% value, but only if you actually close on 95% of the total value identified. This is very risky and rarely used because if one deal falls through, the whole exchange fails.
    ​2. The Value Requirement ​To defer all of your taxes, you don't just have to reinvest the cash; you must satisfy the "Equal or Greater Value" requirement.
    • ​Total Purchase Price: The total cost of all new properties combined must be equal to or greater than the sale price of the old property.
    • ​Reinvesting Equity: You must reinvest all the net cash proceeds.
    • ​Matching Debt: If you had a mortgage on the old property, you must either take out a similar amount of debt on the new properties or offset the difference with extra cash.
    ​Example: If you sell a building for $1.5M with $500k in debt and $1M in equity:
    • ​You could buy three $500k rental houses.
    • ​Total Value: $1.5M (Matches sale price).
    • ​Equity: $1M (All cash reinvested).
    • ​Debt: $500k (Spread across the three houses).

    ​3. Critical Timing for Multiple Properties ​If you are buying three different houses from three different sellers, the timeline does not reset for each one.
    • ​Day 45: All potential properties must be identified.
    • ​Day 180: All closings must be finished.
    ​If you close on two houses by Day 120 but the third one hits a snag and closes on Day 181, the third house will be disqualified. You would then owe taxes on the "boot" (the leftover cash that wasn't used in time). ​4. Selling Multiple Properties to Buy One ​You can also go the other direction (selling several small rentals to buy one large apartment building).
    • ​The Trap: Your 45-day and 180-day clocks start the moment the first property closes. If you sell Property A in January and Property B in March, your deadlines are based on the January sale. This puts immense pressure on you to close the March sale and the final purchase quickly.
    ​Are you looking to break a large property into smaller ones for better cash flow, or are you trying to consolidate small ones into a bigger building?