1031 Tax Exchange Question

[Ben S.]

I am selling a rental that will get me about 120K in proceeds that I intend to use to purchase another rental property using a 1031 tax exchange so I don't have to pay capital gains.

So far I have found a duplex for 250K that will need about 52K in a down payment.  That said the buying market is super hard to find good deals that fit my criteria right now. 

So should I just dump all 120K into the down payment on that property.  Then use leverage the extra equity that I have in that property to purchase another rental without a requirement to purchase within 180 days?  Or is that not a good idea? 

My lender is actually the one that suggested doing this and they do it all of the time.  So it seems pretty logical just wanted to reach out here to see what other think about that.  I would hate to have to pay taxes on 70K if I can't find another property.

Thank you all!