1031 exchange, pull out downpayment without penalty?

[Fred Smith]

Hi all,

I have a property that I bought using a HELOC from my primary residence as the downpayment 1.5 years ago. I'm considering selling the property in order to flip the equity from it into another rental property and ideally, avoid cap gains tax through a 1031. I was doing the math based on the idea of selling for ~350K, pay back the HELOC for down payment (50k), pay off the mortgage(195k), pay realtors (20k) and the remaining (~80k) would go to the next property in order to work as a 1031. But would paying back the HELOC be allowed under 1031 exchange? Or does that money need to go to the next property too? Just trying to make sure my math is in the right ballpark. Thanks.