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Updated almost 3 years ago on . Most recent reply

Jessica Singh's profile image
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Jessica Singh
  • Member since Feb 6, 2020
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Jessica Singh's profile image
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Jessica Singh
  • Member since Feb 6, 2020
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Jessica Singh
9
Votes |
39
Posts
1031 Exchanges

Can I pay off rental property loan as part of 1031 exchange

Jessica Singh
Posted

Hello all, If one has 2 rental properties, can the funds (gain+principal) after selling the first rental property be used towards paying off the loan of the second existing rental property?

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Joseph A Gonzales's profile image
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Joseph A Gonzales
  • Lender
  • from Denver, CO
  • Member since Jul 28, 2019
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Joseph A Gonzales's profile image
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Joseph A Gonzales
  • Lender
  • from Denver, CO
  • Member since Jul 28, 2019
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Joseph A Gonzales
  • Lender
  • Denver, CO
70
Votes |
104
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Joseph A Gonzales
  • Lender
  • Denver, CO
Replied

I am not an expert but I do not believe you can do that. You have to purchase a new like mind investment property. I believe you have to purchase not pay off. I would contact a title company or a 1031 company that holds the money, they would know best. 

  • Joseph A Gonzales
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