Posted by Shawn on November 08, 1998 at 22:05:42:
I am getting a $31,000 first mortgage (75% cash out) on my primary residence to purchase and rehab an investment property. I should be able to resell the investment property for $42,000. What options do I have to reduce tax liability on the profit?
Could I refinance my primary residence, a few months down the road, w/ a 90% refi loan (around $42,000), keep the cash from the refinance, and use the money from the resell of the investment property to pay off the first mortgage on my primary residence to avoid any taxes. Is this even possible, or legal?
Any help or direction is greatly appreciated!