Should I do 1031 Exchange or keep cash durin Covid-19 ?

[Jake Pham]

This is my first post on BiggerPockets, I been reading around for advice but have have a question so I decided to post, please help me out :)

Im in a little bit of dilemma. I bought an investment home in Chicago for 40K around 2.5 years because I got such a good deal, the rent for that is $1200 a month. Now Im currently in escrow and have a buyer that willing to buy it for 92K and it is paid off.

My dilemma is if I sold this property should I do a 1031 exchange and buy another one? Or save cash and pay Uncle Sam?

I been reading and a lot of people are saying keep the cash because in the next couple months there will be more layoff and the housing market will drop, however if I keep the cash then I have to pay 15% tax. Should I not do a 1031 exchange, pay tax and keep the cash ?

My property suppose to close the first week of June and I would need to identify properties within 45 days then purchase them within 180 days. I been looking in to Kansas City, MO with a real estate agent and found a 4 units for around 235k and rent is $2600 a month. With a down payment of 90k. After mortgage and expenses, i will pocket around $734 a month. What should I do ?