In a 1031 exchange do I have to use all money or down payment

[Robert Wood]

If I do a 1031 exchange I know the property has to be equivalent or  more but can you put just the down payment on that property or do you have to purchase all in cash and also can you 1031 into a auction property some how thanks in advance 

[Dave Foster]

@Robert Wood The reinvestment requirement for a 1031 exchange is a two-part rule, first you have to purchase at least as much as your net sale (contract minus closing costs), and second you have to use all the cash proceeds from your sale in your purchase or purchases.  You can buy a much larger property and take a larger loan.  You can buy several smaller properties - some for cash and some with financing.  The composition of your replacements doesn't matter.  As long as you purchase at least as much as your net sale and use all of the cash you'll defer all tax..