1031 and multi-member LLCs

[Ana H.]

I have a rental property in California that is held by an LLC , call it 'California LLC' (my wife and I are the only members) and have filed for taxes in 2017 as a partnership. I am selling this property now and purchasing a new property in Texas through a 1031. The advice I have got is

1. This year (tax year 2018), elect to change to a disregarded entity and then the new Texas property can be in a different LLC (also treated as a disregarded entity).

2. Leave the California LLC as a partnership and buy the new Texas LLC under a new LLC (call it Texas LLC) wholly owned by the California LLC but treated as a disregarded entity. So, in effect, it is the same taxpayer - California LLC.

I am unable to find a preferred approach and don't want to introduce more risk into the 1031 failing.  

Can anyone help shed light here ? Much appreciated