1031 process exchange idea

[Mark C.]

Hi, I have an idea to maximize selling my properties with no notes on them using 1031's and thought I would bounce it off y'all because the wife thinks it seems to good to be true. LOL. Based upon the cash I would walk away with from closing, I was looking to invest in anywhere from 2-4 properties. My thought was to maintain cash flow as good if not better than what the current NOI is with the property paid off. I would target properties needing rehab with hard money $140k or less range with rehab costs of $25-35k and the ARV of these properties would range up from $175k-200k. By putting about $50-60k on each property using the 1031 I would purchase it and rehab it with private hard money notes since it would be far below the 70% finance barrier. I figure my ALL IN fully rehabbed property of 85-100k and ARV's at 170-200k I would not have to bring anything to closing to convert to a 30yr note using the equity to pay all closing costs. My risks? mainly would be locating 2-4 properties and closing in the 180 day window right? IF I had to I could just purchase a full retail using the balance of the 1031. What do you think. Any holes we could punch in that idea?