120: Rookie Reply: Can I Cash-Out Refi After a 1031 Exchange?

Real Estate Rookie

BiggerPockets

How To, Education, Business, Investing, Entrepreneurship

4.8 • 1.7K Ratings

🗓️ 9 October 2021

⏱️ 11 minutes

🔗️ Recording | iTunes | RSS

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Summary

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

Transcript

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0:00.0	This is Real Estate Rookie, episode 120.
0:07.4	My name is Ashley Care and I am here with my co-host,
0:10.5	Tony Robinson and we are in Las Vegas once again.
0:14.7	So, Ashley and I have our nice little setup in the living room area of the Venetian hotel.
0:19.7	So, if it looks a little different, that's why.
0:21.5	But we love recording in person together.
0:23.2	It's like a different energy, different vibe.
0:25.3	We can be in the same space.
0:26.5	Like I feel like the conversation,
0:27.8	this is our third episode that we recorded today.
0:29.7	And like the conversations with the guests,
0:31.2	I feel like just have so much more like flow to them
0:34.0	because we're sitting with each other.
0:35.6	Right, yeah.
0:36.3	And it's more of a conversation than an interview.
0:38.7	So, we're going to coin this Rookie Road trip
0:40.8	and, you know, we're going to go to different cities in New York.
0:43.1	You will figure out where we're going next.
0:44.4	Yeah.
0:45.1	I've always had Paris on my list.
0:46.4	You think we should find some Rookie's in Paris.
0:48.7	With COVID restrictions and maybe hard to travel to Europe or at all.
	...

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