Dear Real Estate Investors: Several of our 1031 exchange customers have adopted this strategy: They are selling investment properties that they bought 2-5 years ago at a loss. Then they are taking their remaining capital and reinvesting in new lower priced property, priced in today's lower market. Of course they are using leverage when and where posible to boost rates of return on capital. Of course this is a bet on a rebounding real estate market. In the short term at least residential vacancy rates remain low. What do you think?