use 1031 money to pay off mortgages ?

[Daniel Blau]

I have two lines of credit used to purchase properties which are adjustable rate ... and now given the increased prime rate they are not such great rates any longer.    if i sell an investment property is there is a way to use the money to pay off the mortgage on that property ?   what about to pay off the mortgage on another investment property ?   is this allowed or is there a "creative" way to do this ?  

thanks Dan   

[Dave Foster]

@Daniel Blau, There's creative ways.  But not that would hold up if ever audited.  If those LOCs were attached to the property you are selling then they would have to be paid off.  And that would be fine.  But paying off the debt for another property you own won't work.

You could do a 1031 and then refinance the new property afterwards and pay off the LOCs.  That would also be fine.