You could pull out cash tax-free and still benefit from depreciation and other deductions on the rental side, which could reduce your tax liability.Quick Tax Comparison:Selling:Capital Gain: $160,000Tax Due: ~$32,000 (at 20%)Net After Tax: ~$128,000Refinancing:Loan Amount: ~$263,500 (at 62% LTV)Tax Impact: None on the cash-outRental Deductions: Continue benefiting from depreciation and mortgage interest deductions.Refinancing offers liquidity without the immediate tax hit and lets you maintain rental income, making it potentially more advantageous.All of these are rough numbers of course, but just some different ways to think about it!

Once you transition one of the homes into a full time rental you will reap that benefit by filing a schedule E at the end of the year.There are a few loopholes to consider like calling one home a "Vacation/Second home" which allows you to pull out 80% LTV with a better rate. 

I think you have to travel back to Canada every so often to keep the benefits. 

An additional benefit of a detailed engineering-based Cost Segregation Study is that it can increase potential insurance premium savings as well as provide support for the property tax appeals process.

Hi all,Feel like I have this one kind of sorted out but I just wanted to run it by some people who may know better than myself.The plan is to pull out a HELOC to help subsidize a downpayment on my next rental property...

What type of real estate are you purchasing in CA and most importantly  can you articulate the dispute you believe will rise to the level (with appropriate standing) to be litigated and benefit from being litigated in DE?

If you do not sell all units you can benefit from the capital gains tax.

You need to account for debt paydown, tax benefits, and depreciation as well.  2.

It will familiarize you with the basic terminology and benefits.

It seems the US has more tax benefits in Real Estate than Canada (I'm not sure) - How can I take advantage of it while residing in Canada?