Borrow equity to avoid capital gains tax?

[Nicole S.]

Good Morning BP, 

I've been searching the forums in hopes of my answer but no luck, yet. 

This is my loose understanding: I was told by some investors this weekend I could borrow the equity in my investment property to avoid capital gains tax because there would be "no gain". The property is currently in contract right now and we're set to close on July 11. Has anyone heard of this strategy? 

Purchase Price: $146,950

Sales Price: $215,000

Mortgage Debt: $107,000

Borrow: ~$108,000

I was told that we need to record the borrowed amount with the sale. Who is going to loan me 100% equity?! Certainly not a mainstream bank - does that mean I'm looking at private money? I'd certainly rather pay those rates than the IRS capital gains rate! 

Thanks in advance. I really appreciate any insight.