A 1031 exchange is a great way to indefinitely defer the tax and use it to grow your RE portfolio, and build long term wealth.The most important factor in a 1031 exchange is that your qualified intermediary must be in place prior to the closing of the sale of your old property.

If you have a scenario that the area is being developed or other factors that indicate value should go up significantly in the future, it might also make sense to hold and refi your capital out. 

Staying local would make capital the limiting factor where my restrictions out of state would be additional research.

Everyone's situation is going to be personal, so take any and all advice you get here with a grain of salt and weigh your options on what best hits your goals and lifestyle.

Location plays a big factor into this question. 

This factors in both monthly rates and vacancy.- What are your expenses?

With $170k to deploy you most likely will have that all in one, maybe two deals, if it doesn’t go well you could end up way worse off.That said, if there are other factors like the property is a huge pain to manage or you are worried the neighborhood may actually get worse or you know you need a new roof in a couple years, then I’d consider selling.Also, even though you said it’s not a high appreciating area, do you think 1-2% is fair?

Obviously, there are other factors that can contribute to the cost.

@Kenroy BernardTo acquire a multifamily property in Long Island, develop a VA Loan Strategy, obtain pre-qualification from a lender, factor in renovation costs, conduct market research, build a team with experienced agents, network with investors, strengthen your business plan, expand knowledge through tools, and take action by searching for properties, attending open houses, and setting a closing timeframe.

For my thesis, I'm conducting research into the practices and motivations of small landlords in Ontario to explore how various social and economic factors influence their business strategies, day-to-day property maintenance, and tenant interactions.Could anyone refer me to someone who might be interested in participating?