Flip, refi, lease option, then 1031 exchange

[Cha Yang]

Hello BP,

I did some research and couldn't find if this has been tried before. I have my first flip under contract but I wanted to run this strategy (I thought of last night) by the BP community to see if anyone has tried it before, or if it is even possible. Here is the situation, I am flipping a property under my llc but I also want to take the equity out so I can pay back my investors and avoid a big tax bill. Then once I refi, I would do a lease option on the property for 3 years, then 1031 exchange if the tenant actually bought the property and pay off the refi. In my head it sounds like it would work, but I would like to know what others have tried.

Thanks,

David