All Forum Posts by: Brett Seeger

Thank you for your response. You don't see an issue if the down payment amount on the new property is less that the cash out amount?

Hi all, I've looked around the site a lot, but I'm new to posting. I have a few single family homes in the Chicago suburbs, and I have a question regarding a 1031 exchange.

I bought my first property for all cash for approximately $50,000. It is held in a Series LLC. It is currently worth approximately $100,000. I'm considering doing a refinance to pull some cash out to use as a down payment for another property. The cash out amount would be below my original basis in the property (say $45,000)

a. Are there 1031 exchange concerns if I do a cash out refinance now, or only when I sell?

b. Is there an issue if I don't use every penny of the cash-out refinance for a new property?

Thanks for your help everyone.