I've seen this happen more than I care to admit, but your best bet is to get a local investor show you how your scenario is almost certainly a losing proposition based on your assumptions.

I think your best bet would be to go into your local bank with that information and get prequalified.

Bet you're almost there!

A QI would be your best bet on how to handle title in a 1031 exchange.

Day 2 - Demolition & Cleanup (Friday 5/15/15)This is our first day actually doing some physical work at the house and a couple of our guys are starting to do a little clean up.

It seems apparent to me that actually using it to pay down debt is counter productive, until you're ready to refinance if that's your objective.It makes more sense to me to save the cash flow (true cash flow, not vacancy/maint expense savings) in a stockpile to use it when an opportunity comes along, whether that looks like a new property or an opportunity to improve either financially or physically the existing state of a income producing property.The opportunity cost of something else coming a long is probably what I'm skirting around, but in my mind it makes sense to bring in a respect for time and opportunity to the equation.I also feel like something I extrapolated from Gary Keller's Millionaire Real Estate Investor is worth sharing for anyone reading for nuggets.  

Back then I questioned, why can't I just open my own physical store and sell this stuff, why do I have to buy it from you the middle man?

Using equity is your best bet.

Add these amounts up, rather than just looking at your current deal, and I bet you are not negative at all!

I bet next time you'll run the numbers a lot more first before signing a contract!