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How do I get my equity out? |
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As mentioned above, one must trade up or even on price and use up all the cash. So while one can put more debt on the new property (if it costs more than the old property), one cannot refinance in the middle of the trade and take cash off the table. Typically what is done is to leverage up the old property in advance of the sale, or complete the trade and then refinance the new property to take the cash out. In both cases, the additional financing must be independent from the exchange. Refinancing after the trade is generally preferable from a tax perspective. And there are ways to structure the refinancing without incurring additional fees.
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