Motivated Buyer - 1031 exchange SC to CO

[Nicholas S.]

Guys I need some advice.  I've got a nice 3/2 house 2 car in a Charlotte suburb just over the border in South Carolina that I've consistently rented out for the last 10 years.  It gets $1300 easily right now.  It cash flows nicely to the tune of about $300/ month after maintenance and vacancy budgeted out.  Also puts about $150/mo to principal.  So lets say $450/mo profit.  ....House will sell for $160K easy - I owe $95K.

A prior tenant is very interested in buying it - even though it isn't for sale LOL.  I now live in Denver and hate that it is so far away (although I've managed it myself from thousands of miles away for the entire time I've owned it)  Anyway - this seems like a golden opportunity to move the investment closer.  Especially since we can probably do a realtor-less deal, and the market is hot in Charlotte.  But... my goal is to own more rentals, not less, so I only want to do it if I can 1031 it for another.

Problem is - Denver is expensive.   Too simplify with even numbers, I can get into something similar for about $300K. Such a house will probably rent for $1800, so if I put all the equity into such an exchange I'd end up with a cash flow of ~$100/mo, and about 450 to principal.  So lets say $550 profit, but 1/3 the actual flow.

I'm also afraid of a correction in both Housing prices and Rent in Denver.  It has been hyperbolic for the last couple years.  A relative who is a big-wig in the banking industry - just moved to Denver - told me (without me asking him) that he would not buy into this Denver market right now.

Thoughts?  And thank you so much in advance!!!