By Costanza Genoese Zerbi | RealTrends Verified Top Agent Southern California | eXp Realty of Greater Los Angeles

Published July 2026 | Reading time: approximately 5 minutes

I bought 3737 E 2nd St #101 in Long Beach's La Contessa building back in 2000 — for my mom and dad. It's been in my family for 25 years, in one of my favorite pockets of Belmont Heights. Recently, I made the decision to sell it. It wasn't an easy one. But it's also given me a front-row seat to something I talk to clients about all the time and rarely get to experience myself: a 1031 exchange.

As a RealTrends Verified Top Agent in Southern California with 20+ years in this market, I've walked plenty of clients through this process. Doing it myself has been a different experience entirely — and I think sharing it honestly, mechanics and all, is more useful than another generic explainer.

Why I'm Selling

This home has meant a lot to my family since 2000. Letting go of it wasn't just a real estate transaction — it came with real hesitation. But after two and a half decades of appreciation, the property had built up substantial capital gains, and holding onto it purely out of sentiment didn't make financial sense anymore. I'm exchanging it for a single-family home in Oceanside — a new chapter, without giving up the equity I'd built.

What a 1031 Exchange Actually Is

A 1031 exchange (named for Section 1031 of the U.S. tax code) lets an investment property owner sell one property and reinvest the proceeds into another "like-kind" property, deferring capital gains taxes that would otherwise be due immediately. It doesn't eliminate the tax — it defers it, potentially indefinitely if you keep exchanging.

For a property like mine, held since 2000, the capital gains were significant. Without a 1031 exchange, a large portion of that appreciation would go straight to taxes at the time of sale.

The Rules That Matter Most

Two deadlines drive the entire process, and missing either one disqualifies the exchange:

• 45-day identification window — from the day you close on the sale, you have 45 calendar days to formally identify potential replacement properties.
• 180-day close window — you have 180 calendar days total (not in addition to the 45) to close on the replacement property.

There's no extension for "almost." The clock starts the moment your sale closes, and a lot has to happen fast: identifying the replacement property, working with a Qualified Intermediary (who must hold the sale proceeds — you can never touch the money directly), and getting through underwriting and escrow on the new purchase.

What Almost Tripped Me Up

Even knowing this process cold from the client side, a few things still took real effort:

• HOA and CC&R review on the new property took longer than expected — every association has its own quirks, and Oceanside's rules weren't identical to what I was used to in Long Beach.
• Cost basis tracking across a 25-year hold is more involved than people expect. Improvements, depreciation (if any was taken), and the original purchase price all factor into the final gain calculation — and I worked closely with my CPA to get this right.
• Timing two escrows at once — selling in one market while trying to close on a purchase in another — requires constant coordination, even when you do this professionally every day.

Why I'm Sharing This

Most 1031 exchange content online is written by people who've never done one. I have — twice over, professionally, for clients — and now I'm doing it with my own family's home. If you're sitting on an appreciated property and wondering whether an exchange makes sense for you, I'd rather you hear it from someone who's lived both sides of it.

If you're considering a 1031 exchange in Long Beach, the South Bay, or Orange County, I'm happy to walk through your specific situation.

Frequently Asked Questions

How long do I have to identify a replacement property in a 1031 exchange? 45 calendar days from the date your sale closes, with no extensions.

How long do I have to close on the replacement property? 180 calendar days total from your sale's closing date — not 180 days in addition to the 45-day identification period.

Can I hold the sale proceeds myself during a 1031 exchange? No. A Qualified Intermediary must hold the funds throughout the exchange; touching the proceeds directly disqualifies the exchange.

About Costanza Genoese Zerbi

Costanza Genoese Zerbi is a Broker Associate at eXp Realty of Greater Los Angeles and the founder of Costanza Genoese Zerbi & Associates. She is a RealTrends Verified Top Agent in Southern California — five consecutive years — with 600+ closed transactions and more than $500 million in career sales volume. She serves buyers and sellers across Long Beach, the South Bay, greater Los Angeles, and Orange County.

Contact: 📲 (562) 221-4527 🌐 costanzagz.com 📍 1650 Ximeno Ave Suite 300, Long Beach CA 90804 DRE #01941438