Best practices for timing a 1031 in a hot market

[Dori Arazi]

I have equity in a San Diego property I’d like to leverage in a 1031 exchange to a multi-family in Nashville.

I have not yet found the right deal on the multi-family in Nashville. If I find the deal then try to set the house up for sale I am pretty much guaranteed to lose the deal. Though Nashville is a very hot market, and it might take me a while to find the right deal on a multi-family. If I sell first I might end up without a deal to transfer into. It seems like there is no good way to set the exchange up in a stable manner. Is there something I am not understanding about how this exchange is structured? Or are there accepted contingencies I can put in place? 

Any insight would be most welcome!