When to do a 1031 exchange

[Stephanie Peterson]

Hello All,

I have a rental property (cabin) that does well, but it has some overhead that I want to get away from. HOA fees, propane fees and the location could be better. This house is also at the point that it needs upgrades. I am not against upgrades but is it better to invest 30k back in or 1031 up? With rates being higher I will lose cash flow but I can refi if rates drop again?

I have about 300K in equity if I do a 1031. I want to buy a newer property with a bit better location, no 4,000 a year HOA and no 3,000 year propane bill lol

What do you think? I ran numbers and my cash flow is reduced because of interest but in the longer game I think I could take advantage of the equity..........

What would you do?

Thanks so much!

Stephanie