1031 Exchange - Capital Gains Question

[Daryl Demz]

Situation;

I have a rental property bought in March of 2012 for the amount of $220K.

(Initially used as Primary Residence until Oct of 2017)

Before moving out, In January of 2017, I did a cash-out refinance, and the new loan balance is about $315K.

(The cash out money I used to by another house)

The current property value is about $560K-$590K.

Now, I'm planning to sell my rental and do a 1031 Exchange to deferred  paying taxes.

Problem/Question;

(Here's the part I'm not sure how it works)

Since my base price is $220K, which means I have approximately $315K in gains after paying fees/commissions.

But the existing loan is $310K, which means in closing I will clear approximately $220K.

There is a difference of $95K compared to my true capital gains.

Then, do I have to come up with another 95K to add to my $220K if I have to do a 1031 exchange?

 How will this work? How should I proceed with this?

Is 1031 Exchange even an option or should I just pay capital gains?

Thank you all for responding...