Is there a way to utilize 1031 exchange funds for upgrades?
I am not sure if this is in the realm of possible/ legal... but I am purchasing a property for $400k (sold the last property for $320k) via 1031 exchange. I have $125k sitting with the intermediary. The property I am purchasing will be turned into a short-term rentals. Is there a way to utilize some of the $125k for furnishing(furniture and housewares) and upgrades to the property (new flooring, paint, pool)? I only need to put 20% down and would otherwise be paying for the upgrades out of pocket when I close. Any advice is appreciated! Thank you kindly!