1031 Exchange Leftover Cash
Hi,
I'm doing a 1031 exchange and will have leftover cash in the amount of $20k. SInce I have a few repairs to make on the property that I will be purchasing, can I use the leftover cash to pay a contractors? If yes, do I need to do this while in escrow, or after I close?
Thanks!
How do you have leftover cash from an exchange? I thought you could not touch any 'boot' during the process. Enlighten me, please.
I will assume the current financing on the loan of the property that I am purchasing, giving the seller 60k, and paying my agent 5k + 5k in closing fees. That would leave me between 20-25k depending on closing costs.
I am trying to roll the balance into another property (I still haven't listed my replacement property yet), but in the event that I don't get any of the other 2 that I list, I'm looking for a way to use it up before I close escrow that's legal to the 1031exchange. I was thinking of doing repairs, and then paying whoever while in escrow, but I don't know if that would be within the rules.
Any ideas would be greately appreciated.