1031 Exchange, Buying & Financing New Properties

[Martin T.]

I have a property in New York that I'm putting on the market next week, which should net about $140k in profit after selling it, and I'm planning on rolling that into 2 new property purchases in North Carolina.  This will be my first 1031 exchange and I had a couple of questions for those who have done this before:

- My title exchange company said that for the 1031 exchange, I need to also roll in the money I originally put down on this property (when I purchased it as a primary residence).  That seemed odd to me, since I wouldn't have to pay taxes on that money, if I was NOT doing a 1031 exchange.  If I do need to include that money, I've got $170k in value I need to roll over.  Any insight?

- Since I already own 1 other rental property that I purchased last year (not including the one I'm selling), I'm concerned about getting financing on 2 other properties, which could total up to $700k in value if I was putting 20% down (the $140k).   Has anyone else run into this?  Last year when I did this, I got approved, but after going through some hoops.  My debt load is next to nothing (1 other small rental property), and my income is high, but I'd be purchasing 2 rental properties in the same year this time.

- The 45 day timeline to identify up to 3 properties, 1 of which I absolutely must purchase (required by the 1031 exchange), is obviously a very short timeline.  In others experience, what's the best way to work in that timeline - have the properties ready to move on by the time the other sells, or start even sooner?  I can't quite grasp how challenging that part will or won't be.

- As a last ditch scenario, if I can only secure 1 property for whatever reason, I'd put the entire $140k into it, and get a mortgage on the rest (likely around $200k on the mortgage). Then is it acceptable to get a HELOC to purchase another property later? Or is that not acceptable with 1031 exchange criteria?

Thanks all, really appreciate all your insight!

Martin