Personal Finance & Money Stack Exchange is a question and answer site for people who want to be financially literate. It only takes a minute to sign up.
Sign up to join this community
My question is about 1031 exchange and whether I can get rid of the mortgages from my life once and for all, by investing only with the equity I got? Looks like this great idea is not possible.
The question is: Can the replacement property be around 400K, or is it that it must be worth 850K, and I must end up with a new 450K mortgage?
The key element of a 1031 is that you are replacing the property with on at least as expensive. Any cash pulled out creates tax issues.
