All Forum Posts by: Roxanne Rose

Hi- here's my scenario and I need answers/suggestions around any loopholes or tax implications I should be aware of. This is all new to me but I think I have a plan. I want to do a $150,000 cash out refi on my investment property (already spoke to two brokers about this) and use that money as a down payment for my own home. All the numbers add up, so it's possible. Then I'm thinking about selling my investment property at the start of 2022 (when my tenants' leases are up so the units are empty) and rolling that over to a 1031 Exchange to buy a larger multiunit building and avoid the capital gains taxes. However, will I have to pay taxes at some point on the $150,000 cash that I pulled before the sale? Will I have to pay anything on the $150,000 after the sale of the house? My plan is to use that for a down payment on an owner occupied home. Thank you!