1031 Exchange in Virginia

[Elizabeth R Matthews]

I am selling a property in Virginia and want to know if I should set up a 1031 exchange. I bought it for 600k in 2002, and lived in it as my primary residence. In 2005 I moved to Louisiana and rented it out, thinking I would sell it within a couple years once I was sure I would stay in Louisiana. But then 2008 happened and I couldn't sell it - it didn't sell. So I have kept renting it out since then, taking a loss every year (rent did not cover expenses of taxes, insurance, maintenance, mortgage payments) so never any cash flow from it. Now I am selling it for a 925k sales price, I will have to pay off around 300k of mortgage and then there is the realtor fee (3%), a seller contribution of  20k. All said, I am not coming out much ahead for a property I have owned for 20+ years and had the hassle and expense of maintaining. That said, should I do the 1031 exchange and look for a property that would get me a better return? Would I have to buy something at 925k less realtor fee, in order to get the tax shelter? I don't want to take out another mortgage so I would prefer to get something at the price point of whatever the cash proceeds end up being. Are there properties out there that are a good investment to be had right now? My closing date is May 31, is it possible to get a 1031 set up at such a last minute point in time and is it even worth it? Maybe its better to pay the tax and put the remaining cash in a high interest yielding account. And how long would I have to find the new investment property if I did the 1031 exchange. What if I can't find something I want? Any advice or thoughts will be appreciated. I am nearing retirement age so I don't want to tie it up for another 20 years unless I am getting some cash flow right out of the gate.