1031/Cash Out Question
I am currently selling a property and the profits incurred need to be funneled through a 1031. My question is better posed as a scenario. I am going to profit 40,000 from the sell of house A. Those profits are then going to be used to purchase a single family dwelling (through the means of a 1031). The SFD's purchase price is 60,000; thus, giving me a balance of 20,000 in which I will seek a note from a financial institution. Is it possible to take a first and a second out at closing. The first mortgage would be the 20,000 and the second could be as high as 60,000, If I went with a 80%LTV. Is this possible with an investment property?
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