1031 exchange of long time rental. Rehab first?

[Darnell Kramer]

Good day all,

I have a long term rental that the tenant is vacating early.  I am looking to 1031 this into a better multi unit investment.

My question is this.  The decor and such is still largely late 70's. Scalloped sinks, brown floor tile, yellow/gold tiles.  I can update the place for about 15k, my own labor, and selling for 20-30k more. 

I would be working with the realtor and designer to get their 'buy-in' on the colors/style for a faster sale.

Would you sell the place as is, and use the rehab money for the purchase of a second property, or go ahead  use it to rehab?

I have the time, tools, capital etc for the work to be done myself.  

Currently I am leaning towards doing the rehab, but thoughts, opinions, and concerns would be greatly appreciated.