Another update: got through a 1031 but there is an important element people should know.
Selling leveraged properties to acquire non-leveraged properties through a 1031 doesn’t work well at all. Essentially, the IRS considers any “first money out” as profit even if it only covers an existing loan. You can google “1031 napkin test” to get more information.
Accordingly, the acquired proerties (or property) must have a total value that is equal or more than the property sold. Therefore, a $300,000 property you owe $100,000 on cannot be used profitably in a 1031 exchange to acquire a $200,000 property free and clear. That is because you will be required to pay taxes on the $100,000 thus negating any benefit of a 1031 exchange.
We acquired one for cash but had throw in an additional property that required a loan to ensure the acquired properties exceed in value the sold property.