Hi,
I recently sold a rental property and used the proceeds to purchase another rental property through a 1031 exchange. The proceeds paid for about half of the new purchase and I brought cash for the remainder.
I would like to get a mortgage on the new property. I know for sure I have no problem getting a mortgage on the portion not related to the 1031 exchange. However, I don't understand the rules around getting a mortgage overall considering that I paid for half of the new property with 1031 funds.
Am I forbidden from *ever* getting a mortgage on that portion? (meaning with no tax consequences)
