What to do? 1031? Sell? continue to rent?

[Aubrey Ford]

Short story I have a SFH that I rented out and the tenant is essentially abandoning. They can no longer afford the rent due to a divorce. Now I am trying to decide to sell (take the long term cap gains hit) versus a 1031 exchange (never done one) or just relist it.

Current Mortgage: $75k, Appraised at $160k 4 months ago. Rents are at $1100/mo.   

Sell option: I could use the cash to help fund a house hack I am in the middle of. It would let me finish that 12+ months sooner.

relist option: it makes about 6% CoC but I am leaving a lot equity that I feel I should tap into. (if I refi and pull out the equity it makes the CoC negative for the next 3-5 yrs)

1031 option: sounds good, but I am concerned about finding the right property in the timeframe and my inexperience with this  creates risk.

[Alex Olson]

The 1031 exchange seems daunting but it is not. You have 45 days to find a replacement property and you can ID 3. You can start looking now and assume that returns you find on current properties for sale will be similar to what they are now with a few exceptions.