Cash-out Refi, then 1031 Exchange

[Eric C.]

My investment condo has been in litigation against the builder for construction defects for almost 4 years and finally settled last month. I'm wondering if I will have problem doing a cash out refi now (LTV is <45%) since I plan to do a 1031 exchange next year . I just purchased an out of state rental this month and want to extract the down payment from this investment condo.

I'll put it on market in March 2017 and do a 1031 exchange with 2 out of state properties.