This week’s question comes from Vince) on the Real Estate Rookie Facebook Group. Vince is asking: After a **1031 exchange, can I refi/cash-out most of the funds and use it to purchase other property? **Will I still be liable for taxes?
While neither Tony or Ashley are tax specialists, they have had some experience in the past with 1031 exchanges). Firstly, make sure you** understand the rules of a 1031 exchange** and use an intermediary to perform one, after that you may be in the clear to refinance)!
Here are some suggestions:
Use the entirety of your 1031 profits to purchase (or subsidize) a new property to limit taxes
Harness the power of appreciation to “swap til you drop)”
Use the same entity to 1031 exchange your property and hold it for at least two years
Use a** trusted intermediary **to complete the exchange
And more in the episode…
If you want Ashley and Tony to answer a real estate question, you can post in the Real Estate Rookie Facebook Group)! Or, call us at the Rookie Request Line (1-888-5-ROOKIE).
Links from the Show
Real Estate Rookie Rookie Facebook Group)
Real Estate Rookie Youtube Channel)
Check the full show notes here: https://www.biggerpockets.com/rookie120
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