1031 Exchange - Time Limit

[Joe Montgomery]

I am California resident with one rental property that has just over $300k in equity and is barely in the black each month (less than $200). Looking to retire in about 5 years. Were are SERIOUSLY considering moving to Tennessee to be close to my wife's family. With a 1031 Exchange, I could purchase multiple properties in the near future and be better off at the end of each month. My question is this. If I were to purchase a rental property NOW with a fair amount of land (5-10 acres), could I build our primary residence on property in 5 years - after retirement?

1st scenario would be probably to eliminate rental aspect of this one property

2nd scenario, would be to keep a rental on property if it were to "save us" tax dollars.  

Also, am I "forced"  to exchange like properties for the SELLING price of my rental? or just the gains/profit??

Does it matter when "looking" for a qualified intermediary (QI), should I look for one more familiar with California or Tennessee?  Or does it really matter since its a IRS thing......

Any other suggestions, remarks, or tips are welcome....

Thanks,

Joe M.

Anaheim