Recapturing Equity? Does that make sense?

[Brandon Duff]

Hello,

I currently have 2 rental properties.

One I bought April 2015 and another last year in August.

Currently the market has LOW INVENTORY and properties are appreciating like crazy.

Las Vegas

The one I bought in April 2015 is probably worth 160k but I listed it at 190k. 

I have about 50% equity at 160k. Purchased at 118k.

It currently rents for 1050 a month. No Hoa, Low Property Taxes, Older safer neighborhood. 

I am thinking of 1031 exchanging into a Multifamily that rents around $3200 No HOA, and the LP is around 300,000 so just over the 1% rule..

I should be able to capture 60-90k from the sale in net profits ( only taking into consideration First Downment + appreciation ) 

I guess my question is.. When you "Trade up" What is the minimum you want to trade up to? is going from a 160k-190kSFH to 300kMF a big enough jump? or two small. 

is the cashflow that big of difference?

1050-550= $500 Cash Flow ( not taking into consideration PM, Cap Ex, repairs Etc)

vs

3200-1460 = $1740 Cash Flow  ( not taking into consideration PM, Cap Ex, repairs Etc)

I think so but Am I now under leveraging myself? Should I go bigger? 

I feel like sooner or later my houses are going to drop down between 118-160k in a year or two. Who knows.. I cant time the market. However, that's just my feeling..

Is that what most people do? Capture the Appreciation at a certain threshold of Equity in a property or is there a rule of thumb of how much equity you really want in a property without being over/under leveraged?