1031 Strategy - What to do with a Boot?

[Daniel Sherman]

Hello Fellow BP members,

We are closing on our first investment property on Feb 28th, 2023 and would like any advice from others who've successfully executed a 1031.  Our numbers:

Purchased duplex in 8/2020 for $120K with rents at $750 per unit.
Selling on 2/2023 for $325K with rents at $1500 per unit.
Net proceeds ~$303,305.00

We are looking for one, maybe two properties in the Tampa area (one hour drive) that add up to the $303K.  We dont have a ton of liquid cash to go above the $303K right now, unless we do a quick HELOC (if anyone has a good HELOC hook-up, I'm all ears).  We don't want to go below the $303K if at all possible.  For those who've done a 1031, did you fall below the total amount and if so, did you pay the tax on the boot of find some creative way to eliminate the difference?  I've seen properties in the area that are pretty desirable for $290K, but that would leave us under the full amount.  I don't mind paying tax if that's the smartest choice, but since this is our first 1031, I figured I lean on the experience of others before learning everything the hard way.

Dan