What would you do with a 350k tax exchange opportunity?

[Chris Reyes]

My family and I are deciding to go into business together by upgrading our rental properties. 

We have an opportunity to sell:
- 1 rental (one of my parents) for 350k 

- 1 rental (of ours) net 80k-100k (use to start process of adding value) 

And yes we do also have reserves in the event of low occupancy. 

We need some ideas from experienced investors on what you would do in our situation? 

Our goal is to get into a value-add multifamily (5+ units). Living in Colorado, it’s a little more difficult to find a property that makes sense to invest in. So buying out of state is not off the table. 

Thank you in advance!