1031 Exchange using HELOC to pay for remodel costs

[Richard Chang]

Hi all,

I have a duplex investment property for sale that needs some remodeling costs with proceeds going into a 1031 Exchange.

I do NOT want to pay all these costs out of pocket as I will NOT receive any cash at sale to reimburse my costs.

Given that I have an existing 200K loan on this property and I want to create a 25K HELOC loan, then would the 25K loan be added to the 200k for a total of 225K going into the 1031 ?

I have NOT applied for the Home Equity Line of Credit yet. Can I even apply for one for an investment property ?

Regards, Rich