1031 for mortgage pay off?
Hi BP friends,
I was researching 1031 exchanges and couldn't find a concrete answer to my question.
Imagine this scenario;
An owner bought a building at $350K with a conventional mortgage. Owner sells building for $1M, uses $200K from the proceeds to pay off mortgage. Owner has $800K left. Owner has another building in another state with a mortgage of about $800K left and wants to pay that off as well. Would a 1031 Exchange work here?
Thanks for any help,
Tom B.