Refinance to pay off investors?

[Joseph Voell]

Good evening all you BP investors. Thanks for continuing to add value to the investment process! I am looking to purchase a SFH with a great opportunity to flip. I have to private investors looking to bring $50,000 to the table. I am looking at a cash purchase for close to $100,000-$120,000. In order to fully maximize my 1031 exchange, is the best bet to refinance after purchase and pay out the investors along with their return? My understanding is that they may be subject to cap gains tax on their profit so I may need to pay them a higher return in order to make that worth their while. Any advice on purchasing with investors but selling on my own is greatly appreciated. Joe