1031 Exchange - Financing Restrictions on Higher Value Property

[Vin Soando]

About to do our first 1031 exchange and trying to understand if there are any restrictions on financing when purchasing a replacement property above the relinquished property price.

Here is our scenario - Selling property at 350K with 210 in equity and 140K debt. Basically a 40:60 debt to equity ratio.

Do we need to maintain that debt to equity ratio when purchasing a replacement property above 350k?

For example, if purchasing a 700K replacement property could the 210K equity be used as a 30% down payment and finance 100% of the 490K balance?  Or would we need to maintain the 40:60 ratio and bring in 210K of cash resulting in 410k equity and a 280K mortgage?