Young investor needs some advice
Hello all, I just bought my second house. I currently have one rental and now this house. This wasn’t an investment property and the plan was to live in the house for awhile. With today’s market I could make $50,000 on the house after just a few short months. Very tempting. I don’t want to pay taxes on the money earned so my thought was to do a 1031 exchange and buy an investment property for around $85,000. I would live in the property for a little while because I would have no where else to go. Say I take all my earnings do an exchange and then refinance the investment property to take all of the money back out. Is this a feasible idea? This would leave me with 2 investment property’s and the $50,000 I made off of the sale. It makes sense in my head but I don’t understand the full scope. Any advice or thoughts would be much appreciated!!