I owned several condos in the past, and while they were profitable, I would not purchase for rental purposes in hindsight.

Specifically, I've been looking at Quebec for cash flow purposes but I've read landlord rights are terrible there.

Yes, that is what I am suggesting- if you got a construction loan on your properties you are in the process of renovating, you could use the cash you have allocated for that purpose for this acquisition. 

It is a very unique property that consists of a "tree house" that is purposely designed as a couple's retreat - it's very romantic and has all the right touches. 

@Pepper Bradford for all intents and purposes they ARE borrowing the money themselves.

When executing a 1031 exchange, the purpose is to upgrade to an asset that is similar to the asset you are selling.

Disclaimer: The information provided here is for educational purposes only, past performance is never a guarantee of future performance.

I was thinking we could separate it too - but especially after speaking w/ Kelly who was the IRS 469 tech advisor he said nope it's always used at as an asset determination for purposes of depreciation. 

Selling the land: If you are not interested in holding onto the property long-term, you could consider selling the land to someone who is interested in using it for one of the purposes listed above, or for some other purpose.4.

@Angelo Darin technically speaking you would borrow the money as a "business venture" and that business would pay it back over time from positive cashflow.The interest on the HELOC would be a tax writeoff for investment purposes - you should speak to a tax professional about this.