New construction 1031 exchange
Hi, my husband and I are getting ready to use a HELOC on our primary residence to build a 2nd single family rental on a lot that we are having surveyed and separated from an existing rental house. We originally were going to fund the entire construction with the HELOC then roll it into a refinance. However, because we have quite a bit of equity in the first property, we've decided to sell it and pay off the new construction with the proceeds...can we do a new construction 1031 exchange instead?