1031 Exchange good in this situation?

[P. Kaye M.]

I currently own two houses. First house is going to be on the market for sale next week. I bought it in 2005 for 273K and I am listing it for 600K. I rented it out for 4 years (2017-2021) and depreciated it during that time (29,300 depreciation). I did not want to continue to rent it out after Covid moratorium and Oregon rent control laws, so did not renew the tenant's lease. My husband and I planned to move back in and sell our other home but he got very ill and we were unable to make the move. He passed in 2022 (appraisal for that date said 525K-550K) I have been on the fence about moving back there, selling or renting. I decided to fix up (20+K expenses in the last 3 months) and have signed the realtor contract last week to sell. I intended to sell, buy a one level with the proceeds and take the capital gains hit. I own the home I will be selling. I carry a mortgage on my other home that is valued at about $480K with a 300K loan @ 2.25%. I would probably keep the other house regardless of what I do because of the low interest rate.

I am now wondering if I should hire a Qualified Intermediary (my realtor calls this an "Accomodater") so I have the option to buy a one level rental, stay where I am at, and if in the future I am unable to live in the two level home I am currently living in (our second home that is my primary residence), convert the rental to a primary residence. I assume I would lose the fee I would pay the intermediary if I do not complete the 1031. It seems like it might be in my best interest to do the 1031, buy a rental that is one level and continue where I am at for the time being, rather than buying a primary with the proceeds and taking the tax hit... Thoughts anyone, and what kind of fees would I be looking at paying the Q.I. I realize I have to intend to rent the new property in a 1031 - which I would intend to do. Also, are there other things I may not be taking into account, other than "quality of life" issues?