To exchange or not to exchange - Is a 1031 exchange right for me?

[Tony Castronovo]

I'm struggling with whether I can have my cake and eat it too.  Situation:

• Selling my portfolio of 8 SFR's (6 I have had greater than 1 year and 2 I have had less than a year) for $1,200,000
• I need to get with my CPA to determine the depreciation.  But minus that and considering the purchase price + improvements, my basis is approximately $1,075,000. So a gain of $125,000.
• Based on my tax bracket and the fact that the two newer properties would be taxed as a short term gain at ordinary income rates and the older properties would be taxed at 15% long term gain rate...I figure it's about $23,000 in tax savings.
• I'm looking to purchase a MF apartment with a target price of $1,100,000.

Some questions:

• Can I even do the exchange given that I have two properties I have held for less than a year?  My logic is that I am not a flipper and my business is buy & hold.  I am selling as a package.  Not sure if the IRS rules are black and white or shades of grey.
• How does "value" get measured?  Sales price or appraisal?  In other words, if the $1.1M apartment appraised for $1.3M which is considered in the replacement calculation?
• I believe I can reduce the replacement amount by deducting commissions and closing costs? Is "close" good enough...is there a tolerance?

The numbers are all close and would love to save $23k.  But I also want to make sure it will all work and this doesn't get crazy complex.  Any 1031 exchange gurus out there?