Pulling Equity · Retirement CASH FLOW

Jan '25 (edited) • 🏡 Real Estate Cash Flow

Pulling Equity

Am I missing anything here?

Let's say you own 3 properties, each having $300k of equity and each having an existing mortgage that requires 2k each per month debt service.

All you want to do is Always Lower your Monthly Expenses and get your hands on the $900k Tax Deferred or Tax Free.

You could cash out refinance (through conventional financing or a *DSCR commercial loan) which would be a non taxable event. But you would be required to service the new mortgage with the new monthly payment/s.

You could sell the 3 properties and utilize the benefit of a 1031 exchange, acquire some other property or properties. If the purchase price of the new property is at $900k you would not have debt to service which would significantly lower your monthly expenses and you would have a fresh property to depreciate.

*Debt Service Coverage Ratio

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