1031 Exchange Hypothetical

[Pete Harper]

I wanted to confirm my understanding on 1031 exchanges.

Sale Price $350,000

Cost basis $150,000

Equity $200,000

Now I only need to reinvest my $200,000 equity. Correct?

Buy $200,0000+ property

Put $50,000 down, finance $150,000

Can I pull out my original $150,000 investment plus the $150,000 financed tax free?

[Pete Harper]

@Pete Harper Thanks everyone for the advice.

I have my strategy;

1) Sell property

2) Place funds in 1031 exchange.

3) Purchase new rental property of equal or greater value.

4) Transfer rental property into LLC name for liability protection.

5) Refinance to pull equity out

6) Buy more rental properties.

7) Repeat 5&6. BRRR...