Cash-Out-Refinance/ 1031 Exchange

[Pruitt Miller]

Hi, I am new to Real Estate Investing. I was hoping to get some input on the logistics of the BRRR strategy.

My parents own a home currently worth around $90,000 to $100,000. They have about $2,000 left to pay off. They are wanting to buy a secondary vacation home around Savannah Georgia. The issue is that they don't have the money in cash, for the down payment. I am hoping to be able to help them through a cash-out refinance. My thought was that they could refinance and pull $70-80K out and use that as a down payment on a $300,000-350,000 home. I think they would want to use a 1031 exchange to differ the capital gains. What are your guy's thoughts on these numbers? Hoping to get some help on what the process would look like. Any help would be great!

Thanks,

Pruitt Miller