Home Equity Loan on primary to purchase 1031 Replacement

[Matt Foster]

We just sold our rental property for 108,400 with a 71K balance left on the mortgage.  We were advised that we need to have the same set up when purchasing our replacement property.  We have approximately 30K in profit from the sale and are planning on purchasing property that is 90K.  Can we use a Home Equity Loan on our primary residence to fund the remaining 60K loan on the replacement?  

Thank You for your help!

[Jacqueline Gardiner]

You can use a HELOC to get more funds, but your replacement property needs to be more expensive (approximately 108K or higher). Or, you can purchase a 2nd replacement property that will bring your total up higher.