Most contractors think selling a rental means getting crushed with capital gains taxes.

Not necessarily.

There’s a strategy sophisticated investors use that most contractors either miss… or execute incorrectly:

➡️ 1031 Exchange + Refinance

Here’s the play:

• Sell your investment property
• Roll proceeds into a new property (1031 exchange → defer taxes)
• Then refinance later to pull cash out (loan proceeds = not taxable)

Done right, you keep your equity working and access liquidity.

Done wrong?

You trigger “boot” and hand the IRS a massive check.

The biggest mistakes I see contractors make:
❌ Taking cash at closing
❌ Refinancing too soon
❌ Poor deal structuring

Timing and structure are everything here.

This is how investors scale portfolios, preserve capital, and build long-term tax-efficient wealth.

If you’re planning to sell or exchange a property this year, this needs to be mapped out before closing—not after.

Disclaimer: This content is provided for educational purposes only and is not legal, tax, accounting, or financial advice. Every situation is unique, so consult your own attorney, CPA, or financial advisor before making decisions based on this information.