1031 Exchange with lower value property

[Huynh Do]

Hello there,

I'm in the process of selling my property and the selling value is $600,000 which will result a $80,000 ( I bought it for $520,000 ) capital gain. I have 2 questions regarding about the 1031 Exchange:

1. Can I do a 1031 Exchange and out of state property. I'm from CA and I'm looking for a property in TX?

2. Since the property's value in TX (   $400,000 ) is less then the my current one, am I still qualifying for the 1031 Exchange if I will reinvest all capital gain into the new property?

Thank you for answers in advance.