Need assistance with 1031 Exchange in NJ

[Shivam Patel]

I have some questions regarding 1031 exchange in New Jersey. I have 3 fully occupied properties that rent for $9200/month. Two are single family and one is a duplex. The cashflow is great, however, I am having issues trying to transfer the properties into LLCs. Should I sell the properties, take the hit, and then buy a new property under a business loan or am I allowed to 1031 while changing ownership to an LLC?

The end goal is to have a larger multifamily in an LLC name. I do have liability umbrella insurance, but I want to set up a better business structure for long term growth the correct way. I do have 2.5% interest on one of the properties which will be sad to see go.