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Updated about 2 months ago on . Most recent reply

User Stats

29
Posts
17
Votes
Brett Jurgens
  • Denver
17
Votes |
29
Posts

Best way to use built up equity?

Brett Jurgens
  • Denver
Posted

I have a rental in Denver that I've owned since 2013. Quite a bit of equity built up. Good rent, good longer-term tenant. 

Should I 1031 or is there a better strategy to keep it and borrow against the equity for another rental?

Thanks!

Should I use a 1031 exchange or borrow against the equity of my rental property for investing in another rental property?

Borrowing against equity allows for appreciation and tax advantages, while a 1031 exchange defers capital gains taxes; the choice depends on your goals for cash flow, diversification, and growth.
Sources: John,Wale,Jay

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