I am trying to get creative in order to make something work...
I have 4 mortgages right now. I want to add a 5th, but it would be a jumbo loan. My lender informed me that adding a jumbo loan cannot be done unless I have 3 or less prior mortgages. There is a 10-mortgage max in general, but jumbos apparently have extra regulations.
Here is my proposed idea, so please help me know if this is possible even if you have questions about the why of my idea...
- Have my girlfriend buy one of my investment properties, reducing my total loans to 3
- I now have no ownership of that property
- I identify that property I just sold as the property I wish to purchase for my 1031 exchange
- In the meantime, I purchase the jumbo-loan property I was wanting
- I take the proceeds from my sale in #1 and buy back the property in #1 and satisfy the 1031.
Is #5 accurate. Would this satisfy the 1031 exchange rules?