To 1031 or not

[Kyle Hipp]

I have a single family rental I purchased in the spring of 2012. I am planning on selling in the spring of 2017. While it cashflows well about $300/m, I would rather take advantage of the decent time to sell. I will have $40,000 - $50,000 in cash at sale. If I sold performed a 1031 exchange I estimate that I would save roughly $5,000 in capital gains and recapture taxes. The cost for a local company to act as the qualified intermediary will come in around $900. I will also have to plow the entire proceeds back into another investment available at that time. 

I am interested to hear from some more experienced folks in this area as to wether they would do this. Prices are higher currently. The property will sell in the $90,000 range. My business model has traditionally been to put down very little and buy a property that needs work and improve with cash then secure a 15 year amortized note. While I will save roughly $5,000, I will not have access to invest it as I desire. Also it will cost me roughly 20% of my savings to perform the 1031 exchange...

Thoughts?