Is there any way to add rehab costs into a property I plan to buy for 1031 exchange?

[Sandy Uhlmann]

When doing a 1031 Exchange, is there any way that I can purchase a property that needs fixing up and have the actual property acquisition price plus the rehab price considered when doing the Exchange? 

I have a house that I purchased approx 3 years ago for about $130,000 that is currently being rented but the tenants are moving out soon. I find that the ROI on that property is not nearly as much as if I purchased a property very cheaply (under $50,000) and rehab it, putting $10-$30,000 into it, depending on its needs, so it is an medium to upper scale rental.

Is there any way to do this within a 1031 Exchange or am I just going to have to purchase 2 cheaper properties and use my own money to rehab them?

Any input would be appreciated