Financual strategy in a cash buy, repair and hold

[Dori Arazi]

I’m analyzing a potentially good deal with a full rehab triplex in a nice neoigboirhood. Even if I manage to get it at the price I want, after rehab it will tie up most of my hard cash. 

What’s the best way to leverage the equity after rehab towards additional deals without getting income tax or capital gains hits? 

And does this limit what I can apply these funds towards in the future? 

Pretty nervous about this side of things. I feel a little blind sided without a clear plan. 

Any input would be much appreciated. 

Thanks! 

[Derrick E.]

Could take out a HELOC on the property or do a cash out refinance to pull your money back out of the deal!