Finance example of 1031 echange

[Frank Schaefer]

I've done a search on this and couldn't find the answer. Sorry if I'm covering old territory.

I understand the 1031 exchange pretty well. I have a very specific question. 

Do I have to fund the downpayment of the purchase property with cash on hand? Or does my equity roll over of the 1031 satisfy this?

Example:

Property to sell: $690000

Less selling costs (simplified): $41,400

Net sales: $648,400

Less current mortgage: $160,000

Net profit: $483,600

New property purchase price: $648,400

QUESTION: Does my net profit from sale of old property of $483,600 count as a down payment? Therefore I don't have to come out of pocket 20% of the purchase price ($129,700) of new asset?

OR, do I have to pay the 20% out of pocket for the new asset?

Thanks in advance for input. I really did try to read up on everything before asking. Maybe I'm just making this more difficult than it really is.