1031 and cash-out refi

[Joseph Minckler]

Hi BP,

I have a friend who has a sizable amount of equity in a condo (he once lived in but as been a rental for several years) and would like to accomplish the following things:

1) 1031 exchange

2) acquire multi-family building (duplex, small apt building, etc.) 

3) live in that building at some point in the future

4) get cash out when/if possible

Any thoughts on this, especially the cash-out part, as well as any issues with him living in the building later.

-thanks!