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Updated over 6 years ago,
Can I do a 1031 exchange on a property that has a HELOC?
BP,
I have a property bought using a 1031 and I’m looking to do another 1031 to upgrade to a small multi-family. I currently have a zero-balance HELOC on it. If I use the HELOC (say, 20k of a 30k HELOC), can I still sell the property and do a 1031 or do I have to pay off the HELOC first?
Thanks!
Best,
Rhett