I am planning to convert my primary into a rental and probably keep it for 2 - 3 yrs then might 1031 exchange into something else. Before I do that, I am planning to do cash-out refinance (HELOC is another possibility) so I’ll have less amount I need to tax defer.
Does anyone have experienced that sort of situations? From the internet, it looks like IRS is frown upon if you cash out refinance your investment property too close to exchange. But given it is 2 years out plan and refinance even before it becomes an investment property, I am hoping that it will be fine.