However, if you needed to access a bit of cash you could complete your 1031 exchange and immediately do a cash-out refi.

.- Unlike a 1031 exchange you only have to invest the capital gains from your sale, rather than the entire amount of the sale. 

@Buddy Holmes, If the LP or LLC sells and does a 1031 exchange. 

Cash out refinances after a 1031 exchange are not a taxable event.

Exchange fees have changed quite a bit over the least couple of years. 

Remember, once you sell, you can’t undo the exchange — you’ve got strict timelines and need to land a property that’s better for your portfolio.4.

Unlike 1031's there is no need for the 45 day Identification Period. 5) Unlike 1031's you don't have the rules of like-kind exchanges. 6) With 1031's at some point a piper has to be paid.

@Ian Russell, this strategy is what we call a diversification exchange.

But the whole point of exchanging is to defer your gains over and over again.

-Mexico citizen, born and raised in Colorado, and over the past few years I’ve been actively investing in Mexican real estate — mostly in presale condos and long-term or vacation rental markets like Guadalajara, Cancún, and Lake Chapala.I originally started by looking for affordable, well-located properties for personal use, but as I dug deeper, I realized there were real opportunities for long-term appreciation, rental income, and geographic diversification — often with as little as $20–30k down.The process isn’t as complicated as people think, but there are definitely key things to understand, including:How foreigners can legally own property in Mexico (especially in restricted zones like the coast),How presale contracts and developer relationships work,What kinds of rental strategies are viable in different markets (Airbnb, mid-term, or traditional long-term),Currency and exchange rate considerations, title safety, and banking between the U.S. and Mexico.One major advantage of presale in Mexico is that many developers offer in-house, interest-free financing during construction, allowing buyers to spread out payments over 24–36 months — without involving a bank or mortgage process.