Diversifying a 1031 into out-of-state rentals, Utah, Idaho?

[Steven Wertheimer]

Hello BiggerPockets community!

I am currently helping my family to make a decision regarding moving assets from a 1031 exchange (home was bought in the SF Bay Area over 30 years ago as a primary residence, and later turned into a rental). Needless to say, the capital gains will be massive, hence spreading most of the sale of the home into other rentals.

We have been looking into parts of Utah (near Salt Lake City) and Idaho (near Boise) for sfr's or multifamilies investments and would like to stay in B or A neighborhoods. These areas seem to have good prospective job growth/diversity, low in natural disaster, and good natural resources. Also they are somewhat close to the West Coast (where we reside). I'm hoping to visit these areas soon and was interested if anyone had some insights regarding this rough plan considering our time constraints and where the market is at this time.

We're looking at all-cash, and most likely will not be self-managing (at least for now). Cash-flow is important (hoping 8%+ COC), but the prospect of buy and hold matters. Maybe what we are hoping for is a long-shot regarding the areas we are looking at, so we may be looking to other states.

Thanks,

-Steven W