1031 Exchange With a Renovation Loan?

[Chris Samson]

My wife and I are currently under contract to sell a rental we have for $161k, our cash out of the deal will be $80k. We understand that we have to purchase at least $161k worth of replacement property and the entire $80k has to be reinvested into the replacement property. 

My question is, can we use a renovation loan for the replacement property if the replacement property's purchase price is over the $161k? 

Example: we buy a replacement property for $200k, it needs $100k worth of renovations, and has an ARV of $400k. We put the $80k down for the purchase but then immediately receive the $100k for the renovation.

Is this ok?