Can I use more debt on a 1031 exchange?
I have received conflicting information on this so I thought I would ask here to share with others who may be interested in finding the answer.
I have a property I bought for 800k. I am selling for 1 million (after closing costs and comissions) and the note is now 600k.
I was wondering if I could I could buy a property with 200k down and 1 million total value and pocket the other 200k tax free.
Could I also break it down and buy two properties at 500k 80% ltv?
In other words, can I increase the debt on my 1031 exchange and what are the tax consequences of the money that remains?