Using a 1031 Exchange

[Mark Cios]

We are looking to sell our house that we have owned for a little over a year and a half. We have been presented with an opportunity to buy a family members 6-flat and really want to go through with it. We are looking at a profit of anywhere from 60-80k on our home(purchased at 165k, put in about 20-30k, and anticipate selling around 260-270k). I understand roughly how the capitol gains are calculated and so that is why I am assuming that for our profit. We plan on buying the apartment for about 500k with a 20% down payment. Will we run into any issues with the 1031 exchange as far as like properties are concerned? Also, we would like to not have to put everything from the house onto the apartment. In other words, we would like to put about 50k into the bank for a future purchase(we owe 120k on the house, 270-120=150k). Is it just the capitol gains that must be transfered over to the new property or will the equity from the home need to transfer as well? Are we better off waiting until October when we reach the two year threshold in order to stash the 50k for later?