I have an complicated loan timing situation and was wondering if anyone had an idea on how to execute this better. Thanks in advance if you get through it all.

I own several properties, which are all owned in my name only. I bought a BRRR duplex this month for $90k cash, and will be doing a $16k rehab on it. However, I am not able to qualify for any more financing, so my wife will be the one refinancing it. My wife is buying her first property next month, an owner-occupied duplex. (She has to be a first-time buyer to qualify for the specific loan we are using, which is why I didn't put her on the title for the BRRR house).

After she completes her primary residence purchase, I will immediately add her to the title of the BRRR duplex and then she'll have to wait 6 months until she can cash-out refi. My question is:

1. If I "sold" her the finished BRRR duplex, she would be able to just do a purchase loan with a better interest rate and we could get our money back out immediately. However, I would have to pay taxes on the sale, going from cost basis of $106k to sale price of maybe $135k. Anyone see a way to do this and avoid the taxes?

Could I really sell it to my wife for $135k so she can do a purchase loan, and 1031 out of it into another property?

@James Debenham can please share if this plan was successful? Sort thinking of doing something similar. Not really caring much about the taxes, but would like to know if I can do this to get money out quickly.

DIdn't end up doing this. Much better option is to file a private lien on the property, and then call a bank and do a rate/term refinance which doesn't require a 6 month seasoning period. 

For example, if I buy a duplex for $100k cash, spend $40k on remodel, I then go file a lien against the property for $140k (my private lender is the lien holder). Then I call a bank and refinance my existing $140k loan into a conventional loan. No seasoning required because you're just replacing one loan with the other, not doing a cash out. I've done it in as little as 2 months.

@James Debenham Honest question, what prevents you from selling the home to your wife for $1? That way you avoid thousands of dollars in taxes?