The max qualifying DTI is 48.99% which includes your housing expense and all other debts on your credit report.

Research this carefully, set your goals beforehand.For instance, I needed to cover a debt service from my relinquished property, I wanted a DST with an experienced sponsor with a good reputation, and I wanted a 6% return.The return I was demanding eliminated much of what was out there.It was VERY easy to eliminate the many DST brokers out there.  

They can ensure a smooth transfer and advise you on potential legal and tax implications specific to your situation.

Is this legally allowed?

I don’t think 1031 exchange on a primary is legal 

It depends on whether you are seeking a debt or equity partner.

Would defer to someone with a legal background as to the ramifications of lead inside vs. outside your house, adding more relevant links for folks hearing this for the first time.https://riag.ri.gov/press-releases/attorney-general-neronha-...https://health.ri.gov/programs/detail.php?

so most people will have to be as leveraged as possible to scale (at the beginning). as in, keep your LTV high and focus on buying 'as much' ($$) RE as possible. this is if you're doing a pretty run of the mill REI strategy like buy and hold. i came across an interesting guideline once: if you could sell today and net 7x+ your annual true net cashflow, you should cash-out/refi, or sell/1031. think of it this way: if your portfolio in a year is worth 1m market value, and you owe 600k, and have a lender that will do a portfolio loan at 80% ltv, you could cashout refi and get 200k to play with (minus closing costs). when you compare the now-lower cashflow from the existing portfolio (higher LTV & maybe different rate), to what you can do with 200k cash, THAT'S where it gets fun. maybe you lose 1k/mo in cashflow on the original portfolio (literally just made up a number, idk), but you can gain 2500/mo in cashflow with that 200k.. then doing the cashout/refi earned you a net increase in your monthly profit of 1500/mo, plus you're getting debt paydown and appreciation on "more" real estate, probably getting bigger tax benefits, etc.

I personally don't like pay too much attention to ProForma as I can't predict the future so I usually just like to know if cash flow is good AND more importantly if I'm financing, if the DSCR (debt service coverage ratio) is high enough to safely qualify for financing (usually above 1.2). 

Is it possible to cash out refinance my mortgage use the money to fix up the condo, pay off the small debt I have and then sell my property?