1031 Question (Existing Second Home Loan)

[Scott Weston]

We recently purchased a home using a 2nd home loan (with intent to use a few weeks a year and rent the balance which is permitted).

We just got a really compelling offer to immediately sell the home.  Curious if the existence of the second home loan would prevent me from placing the gain into a 1031 and finding a replacement property.  Obviously I would have to go for an investment/commercial loan on the replacement, but curious if this can be executed.

Thanks