1031 to BRRRR to pay-off

[Tim McCahill]

Hi everyone - 

My wife and I are considering doing 1031 exchanges on up to three of our properties over the next 12 months. The general idea is that we would BRRRR the replacement property (ies) and use the proceeds from the cash-out to pay off two of our best-performing multis for greater cash flow. This would be our first time doing a 1031 exchange, and also the first time doing a BRRRR on a more accelerated schedule (i.e. refi in under a year as opposed to current timeframe of 2-3 years after purchase). There is more prep and due diligence we to do before we initiate the first exchange, but I'm curious if anyone in the community has used this method (or similar) and can share any lessons learned from the experience.

Thanks in advance!

Tim 

[Whitney Hutten]

@Tim McCahill Dave is a master at this. You have some great advice there!