1031 with rehab questions

[Marvin Meng]

Hi all! 

• I'm getting ready to sell a SFR and a 3-plex; the sfr I've owned for over 10 years, the 3-plex about four. I plan on speaking to my accountant to determine if a 1031 is advantageous to start with. Assuming that it is, which is my expectation, I have a few more questions which would effect my strategy going forward.
  • Can any of the proceeds from a sale be applied toward rehab costs of the new property and still fall under the 1031 protection?
  • If not, can a property purchased under a 1031 be refied, and if so can money be cashed out?
  • Are there time limits on when a 1031 purchased property can be refied?

I'm aware that rules vary from state to state - for the record I live in S. Illinois. But I figure most of the 1031 rules and procedures are common across state lines - especially since they involve IRS (Federal) rules. 

Thanks everybody for any ideas, opinions or experience you have to share!

[Wayne Brooks]

@Marvin Meng The 1031 is federal, no variance between states.

@Dave Foster knows the required mechanics of rehabs/refi on the replacement properties.