1031 into an investment property you already own?

[Edward Acker]

Scenario: buying a 400K SFH that was already doing a decent airbnb business. Possibly selling a townhouse with HOA issues that will leave me with some profit. If townhouse sells after the airbnb property, can I 1031 exchange the townhouse funds into the the SFH?

both properties are alike in price but the airbnb property is less expensive by 40-60 thousand. "IF' you can do the exchange in this scenario where do the funds have to go?

-Pay down principal? Upgrades? or just into the bank account of the property?

Thanks to all in advance!!!