1031/DSTs Debt, and Depreciation

[Mike Mosk]

As I am considering what DSTs to invest in, I am wondering about DSTs with Debt, and if/how that relates to depreciation.

My situation is that i am getting ready to invest the proceeds from the sale of an inherited commerical property, so i am looking to rollover these proceeds into several DSTs in a 1031 exchange. The property was paid off years ago - there is no remaining debt on the property.

Questions:

- if i invest in a DST that has debt, what does that imply for the next time i rollover from that DST: do i have to invest in a DST with the same debt ratio (or higher), or is that not a factor.

- is the debt ratio related at all to the depreciation i can take against the property?

thanks!