Equity line question on a 1031 exchanged property

[Michael Klinger]

We did a 1031 Exchange a little under a year ago. Out of an office building --  Into 3 seprate multi-family properties. We are now talking to the mortgage lender (the same lender for the three replacement properties) about securing a significant line of credit using the apartments as collateral so we can do some other short terms deals with "cash purchases" then refi, etc.

Are there any considerations or gotchas/ endangerment with this idea the regarding the original 1031 exchange? The credit line would be in the name of the parent LLC that was the entity the exchange was done in. The properties are held in their three subsidiary LLCs -- which are disregarded entities.