Is this a Possible 1031 Strategy?

[Todd Mason]

Thinking about how to best structure a 1031....

Loan balance: $125K...... Est net sales price( after all closing cost ) $310K

Est net proceeds: $185K.... This would be the amount to roll over into 1031 and put towards next property

I currently have a HELOC on the property for $90K.......... Here is my thought / question

If I was to withdraw the HELOC before the sale of the house that would count as debt/ 2nd mortgage on the house right? Which debt is non taxable. Leaving the net taxable sales proceeds of $95K to 1031

Does that make sense or am I off and missing something?