200K in 1031 money. What do you do?

[Daniel Lehman]

I have two properties in California.  One I lived in, and one has always been a rental.  The one I lived in has been rented for the past 5 years, so I can't avoid capital gains.  I live in San Diego, and want to sell both properties, and am not sure of what to do with the proceeds.  

So - for those of you with experience.  You have 200K in equity to work with on a 1031 exchange.  What do you do?  Where do you buy?  What do you look for?  

Thanks!