Question on Exchange

8 months ago I purchased a small commercial property via a 1031 exchange. It was almost an even exchange.

I paid for the new property in all cash just to keep it simple and also because it was my first time doing a 1031 exchange. I used all the net proceeds to purchase the new property.

Now I realized that I should have used leverage and bought a larger property.

My question now is as follows:

Would I be breaking any IRS 1031 exchange rules if I got a Bank Loan on this purchased property and got about 70% equity out and invested this 70% as a down payment towards a new property?

If I would not be breaking any IRS 1031 Exchange rules, do I need to get a 1031 exchange involved for this transaction?

Thank you

Reply to
Please help!
Loading thread data ...

BeanSmart website is not affiliated with any of the manufacturers or service providers discussed here. All logos and trade names are the property of their respective owners.