Is there a Minimum length of time 1031 funds need to stay invested?

[William Coet]

If a multifamily property is sold and funds reinvested into a syndication, is there a minimum amount of time the funds need to be invested before they can be collected without the cap gains penalty of the original sale?

Thank you

[Dave Foster]

@Nathan Grabau, or convert it to your primary residence.  In which case you will get an increasing proration of the gain tax free for the period of time you lived in the property.  If the property you have is a good producer then a cash out refi as you suggest is usually the best move.  It all depends on stress testing the current property under the increased debt load.  But keeping a property that will under perform just so you can get the cash out in a refi is a pretty risky strategy.  And that's where the 1031 comes in.  Every day you don't pay tax is another day with the money in your bigger pockets!