Owner occupied duplex best markets for 1031 exchange

[Kumar Gaurav]

Hello,

I need to soon relocate to CA soon due to my new job in SF so I will need to sell my duplex .

I currently occupy one of the units so I don’t have to pay any capital gains tax on that but the unit I currently rent I will end up paying capital gains tax if I don’t go with a 1031 exchange. The other unit is worth around $500,000 and I may end up paying tax on up to $120k. I was initially thinking about investing in a duplex or triplex in with upto 500k in Oakland CA due to its close proximity to SF but it looks like the prices have gone up really high now, I was also thinking to invest around Roseville, Tracy or even Sacramento at least in a single family but I would like to know are there any other markets worth looking into for even better Cashflow?

Is AZ better than Sacramento , I am open to other ideas, appreciate your inputs.

Thanks