1031 Re-fi with cash back?? - Posted by Thad

import · September 20, 2005, 1:50am

Posted by Thad on September 20, 2005 at 14:03:10:

My late night math has an error, the 80% LTV would allow me to pull out about +/- 200k. The 115k is the 20%.

import · September 20, 2005, 1:50am

Posted by Thad on September 20, 2005 at 01:50:57:

Can someone help with this?

I recently purchased a building through a 1031. I will have invested about 70k out of pocket, and should have it leased up in the next month.

I originally purchased the building for 350k and it should appraise for about 575k after the work is complete. I want to refinance it at 80% LTV, thus pulling 115k out. My accountant is concerned that any money over the 70k might be view by the IRS as part of my original boot. My argument of course is that this profit as a result of my 70k investment and the original boot is still intact.

Can any one shed some light on the mater?

Thanks,
Thad