cash-out on my investment property 1031 exchange?

[Amy Stanley]

I am doing a cash-out refinance on my investment property.  I will be using the money to invest in another investment property.  Do I have to put the money into a 1031 exchange if I plan on purchasing before the end of the year to avoid capital gains or income taxes?

[Brad Hammond]

Hi @Amy Stanley, since a cash-out refi is not a taxable event, you will not need to do a 1031.  That is only on the sale of properties.