I suggest you to talk to your CPA to calculate to get the best new mortage amount.
If you purchase a less value new property, the capital gain tax will need to consider depreciation recapture, your new mortgage amount to calculate your capital gain.
I also suggest you to do cash out refinance before you sell you property.
At a seller market, you might want to do reverse 1031 exchange (with extra expsense). That way, you can buy it first with enough time to shop around, and sell it quickly. Otherwise, it is very hard to bid a new property in a seller's market, and you will have to face the time pressure and may make a bad choice at the end.
Well, it is depending how hot it is in your local market.
古石
