First time poster - thanks for letting me in! I found a foreclosure listed for auction at $800K but worth $1.5-$1.8M. Could I fund the purchase using a bridge loan with the assumption to sell my existing home ($1.5M)? My thinking is this leaves me with two paths: A) Best case is I pick up the foreclosure for $1M, immediately list it for sale at $1.6M or more and hopefully sell for a > $500K pretax profit. B) Worst case is I sell my current home, move into the foreclosure, live in it for 2 years, and then resell without the capital gains tax hit.
Would a bridge loan allow the sale of the newly purchased home instead of my existing home?
Could I 1031 exchange on the sale of the quick resale of the foreclosure to buy other investments or would I be excluded from the 1031 exchange as a "dealer"?
Thanks!
