1031 exchange on a property with mortgage and heloc
Hi all. Got a fuzzy question i cant seem to get clarity on. I own an investment property that i have a primary mortgage on. I also recently got a heloc on the property but havent drawn down on it. I am considering a 1031 but already found the next property I want to buy. If I draw down on my heloc for the downpayment of the new property will the proceeds from the sale of my current place be allowed to payback the first mortgage and the heloc?
Thank you
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@Dave Foster excellent advice