Think I want to 1031 but looking for advice!

[Chris Miller]

Hi All! Looking for a little input from the BP community here. I own a multi-unit building in so cal worth approximately $2.5 million. It brings in $13,500 monthly gross. We have about 1.5million in equity on it. I’m thinking about selling and 1031 into multi-units out of state where we can find that 1% rule and get better cash flow but still be in a growing/decent area. Part of doing this would be to transfer this asset out of this landlord hating state and also improve cash flow. I’m thinking about best ways to accomplish this. Any ideas? Thx in advance!

[Scott Wolf]

@Chris Miller, if the property hasn't given you headaches, and the numbers still work, you could also pull an additional $750,000 out of the property through a refinance. ($2.5MM value, 30% equity from the bank is $750k, letting you now have $750k instead of $1.5mm in the property), and use those funds as a downpayment on another property.  A refi is also a non-taxed event.