Cash out refi prior to 1031?

[Rob Golob]

I have a farm I would like to sell.

It is an investment property with cash rent.

I would like to “exchange” it for a single family rental but want to take cash out.

2012 purchase = $148,000

Value = $260,000

Current loan balance = $85,000

70% LTV refi = $182,000

Cash out = $97,000

Sell for $260,000

Pay off $182,000

Equity for new purchase = $78,000

1031 into a new $300,000 SFR

(Greater purchase price than sale price)

$78,000 down payment

(All proceeds toward new purchase)

Successfully avoid (legally) Cap Gains tax on $112,000

Successfully cash out $97,000 equity

Is this all good, correct, legal, logical, etc?

Comments, confirmation/denial, advise requested.

Thank you