About this episode
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 Learn more about your ad choices. Visit megaphone.fm/adchoices