Rehab or 1031 Exchange?

[Albert H.]

I have a rent control duplex that is about to be empty in both units and I’m trying to decide whether to rehab it and re-rent it or do a 1031 exchange. The duplex is almost 100 years old with lots of deferred maintenance. Since it is going to be empty and it is a rent control property, if I were to sell it I believe the time would be now. I own it free and clear. The only problem is that it is a family home for 3 generations, so it has sentimental value to me.

I wonder what anyone recommends in terms of assessing whether to rehab it or 1031 exchange? Termite inspection? Home inspection? I want to keep it but I am worried that if I start renovating it I will find expensive issues I’m not aware of and it will cost more than I planned. I’ve also never done such a large renovation so there is fear of things going wrong.