Not too confusing at all @Erik Schilling .
The statutory order of a 1031 exchange is that you must sell first followed by your purchase. You may not use 1031 funds to pay down the note on a property you have previously purchased. However there is a a way to accomplish what you're describing - called a reverse exchange. What has to happen is that the 1031 intermediary has to take title to the new property as an "exchange accommodating titleholder". then after you complete the sale of your old property you accept title from the intermediary.
The deal breaker on this is that reverse exchanges are relatively expensive and if you're only making $15K on the sale of your old property it is doubtful you would save any taxes if you do a reverse exchange.
However, if the seller of your new property is willing to owner finance, would they also be willing to do a lease option or contract with the contingency of the sale of your old property first? If you could motivate them to do that then you could complete the sale of your old property and follow that with the regular 1031 to purchase the new property and then you would enjoy some significant tax savings.
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