Posted by AzBob on April 02, 2003 at 20:02:11:
Only you know if the proceeds from the sale would buy another property. Last exchange we did the proceeds allowed us to buy three properties.
The rule is you may not take any cash out of the exchange, and debt must be equal to or greater then the debt on the property you exchange out of.
Bob
Tax Exchange program - Posted by Ryan
Posted by Ryan on April 02, 2003 at 19:11:43:
Let suppose I have a property which I bought last year for 100k with 0 down. After 30k of renovation, this house is now worth 215k. I’d like to now do a cash-out refi and take out 60k then do a 1 year lease/option with a tenant/buyer at a strike price of 225k… If I do a Tax Exchange when the T/B exercises his option, would the proceed from the sales (225k - 160k mortgage - a few thousands here and there) be enough to apply toward the new house or do I have to shell out the 30k that I got from the refi (60k - 30k fixing costs)?