Buy 1 or 2 replacement properties during 1031 exchange?

[Jack B.]

Last time I sold one and bought two replacement properties, and that worked out great for cash flow and appreciation. Went from 10K a year cash flow on a paid off property and 30K a year appreciation to 170K appreciation first year and 15K cash flow on two replacement properties that were mortgaged.

I'm considering doing the same, buying two replacement properties when I sell another seasoned rental, BUT...Not sure if that's the BEST approach with a recession looming. I could just buy one replacement property and cash out refinance after and hold more cash waiting for buying opportunities. OR I could take advantage of some of the current price drops I'm seeing lately...

I know when a price drop occurs, if you 1031 into bigger and better deals, you actually come out ahead. 

Example: if your 100K property drops 30% in price and 300K properties also drop 30% in price, you may have lost 30K on your original property, but you are gaining a 90K discount on a single replacement property. So if you buy two replacement properties, you're coming out 180K ahead discount wise.

Maybe I just answered my own question.