The 200% rule is a 1031 identification rule that lets an exchanger identify any number of replacement properties as long as their combined value stays at or below 200% of the relinquished sale price.
The 200% rule is one of three identification rules, alongside the three-property rule and the 95% rule. Under the 200% rule an exchanger can name more than three candidates, but the combined fair market value of everything identified cannot exceed 200% of the value of the property sold. Investors often use it to keep several NNN options open while they complete due diligence. If the limit is exceeded, the identification can be invalid unless the exchanger acquires at least 95% of the value identified, which is hard to do in practice.