The IRS allows 1031 Exchanges to defer taxes on what they consider to be capital assets. 

Thanks in Advance.Your action most likely does not meet the requirement of a 1031 like kind exchange.

@Mayra MangualYou now know through our exchange of private message that I wasn't talking about those two developers but I'm mention it here for everyone's benefit.

I could sell the condo and "exchange" for something hopefully bigger but I'd love to hold and hang on to the San Diego property.

But 1031 exchanges fix that issue. 

If some need more time you could begin renovations on some of the units while still collecting rent on the others.You could even ask for higher rent in exchange for anyone needing more time.

In order to do this, there is a need for more properties, or exchanging existing properties for larger ones, with larger cash flows in each. 

But then most of us usually do 1031 exchange long before that. 

In a 1031 exchange, you need to use your funds to acquire/improve property that you do not already own.   

The segment below median (class C) is also interesting, but requires a lot more involvement and attention in exchange for the higher cash flow.