Investors can identify a replacement property in a handful of ways. For example, the investor can simply choose three properties, regardless of the market value or he can practice the 200% rule. With the 200% rule, an investor can identify any number of properties, as long as the fair market value of the replacement properties does not exceed 200% of the fair market value of all of the Exchanged properties as of the initial transfer date. Lastly, the 95% rule is an option. This is where the investor chooses any number of replacement properties, if the fair market value of the properties actually received by the end of the Exchange is at least 95% of the fair market value of potential replacement properties identified.