1031 tax deferred is for investment property.

1. you could structure it as interest only, and the lender would pay ordinary income tax rate on the interest paid. even if interest rate was 0% they would still pay around 4% (FAR rate) in taxes.2.

Income Tax Return for Estates and Trusts.

Also there is a management fee to pay for all of the above.

Plus, you will not only need to know how to invest, but you will need to learn how to bank differently, leverage your credit, pay taxes differently, run a business, do negotiations, etc.

So, they think it's done and high-performing and you think it needs a complete makeover so you would be paying up to renovate.

Can I use rate and term refinance to pay off my hard money principal (including rehab portion) until the 12 month seasoning period until I can cash out?

You tend to have breathing room to cover living expenses and more time to think on next investments to scale and grow the portfolio.That's very hard to do when trying to scratch and claw to get a start wondering where money is coming from to eat and pay the bills to survive another day.

most of the builders that we work with are able to pay more points for the investor than sellers on the secondary market.  

I know it could rent and essentially pay for itself.