Investments into down payments with a 1031 exchange

[Jordan Northrup]

Hey Everyone,

I'm an REI newbie looking for my first deal. My wife and I have excellent incomes, sizeable investments, and $30,000 saved up in our emergency fund. I want to start investing in real estate and exploring options to come up with a down payment big enough to get a good interest rate, get under 80% LTV, and have a decent cash flow.

Let's say I find a potential deal and the down payment was $50,000.  I have nearly $400,000 in investment accounts...would I be able to liquidate $50,000 and 1031 that money into the down payment and avoid the capital gains taxes?