1031 purchase replacement property below market value

[Mike Flora]

Can this work for a 1031 exchange and how would this be taxed. This is an example below but easily could be done in the future of my business. I️ sell my free and clear property for 100K, which is what it appraised for. I️ purchase a property worth 160K for 90K and it needs 10K repairs and I️ wanted to use that 10K left over to invest in the property I’m purchasing. What happens in this scenario if I️ wanted to do a 1031 exchange. Technically I’m buying a like kind property worth more than the property I’m selling just my purchase price is lower than what the property is worth.