Posted by dealmaker on March 13, 2006 at 07:37:19:
Well, the good news is that the cap gains rate is lower now than in the past, the bad news is that 1031 (like kind) exhanges are just that LIKE KIND. So it’s investment ppty for investment ppty, not investment ppty for personal residence.
Or you could do what I did, 1031 out of rentals, into another (carefully selected) “rental”. After a minimal time of being a rental (it was on 3 year’s tax returns, but not rented for 3 years) I moved into it. Now happily retired in it.
Not sure about the tax consequences of borrowing since I NEVER borrow money. With over $1MM in equity I’m not sure why you would want to either.