I've got a CPA and an accountant that state their clients do this as long as the equity is rolled into a qualified property in another exchange.

The option of rolling the replacement property into a more expensive deal is so unappealing when bargins are always hard to find in our area.

With this cushion, we roll in ALL closing costs, construction interest reserve which gives you the benefit of making no payments during construction, and also a $10,000 home equity line of credit that you have full access to at completion in case of any potential negative cash flow from renting or temporary vacancy before it sells or rents.

:roll: Don't get lost now...there's a lot of stuff onthis site to read!

:roll: However, they still reject my offer that will clearly cover their mortgage payoff and agent fees, and ask for considerably more in the counter.

Remember, you're in TX, so am I and your property tax is going to INCREASE when it ceases to be your homestead.

And you know how to fill that roll.

When I came on board a few weeks ago my background, internet marketing/website design and administration, lead me to thinking that introducing the concept through appropriate forums, to get the ball rolling, might be one way to go.

Closing costs are rolled into the transaction, leaving you with a truly passive 20% built-in equity.

The recent loose lending habits allowed many owners to borrow up to 100% and some allowed the closing costs to be rolled into the loans!