To facilitate a 1031 exchange where you are deferring 100% of the gain, you would need to purchase a replacement property that is equal or greater in value to the total sale price, less closing expenses.

According to the IRS, “Gain deferred in a like-kind exchange under IRC Section 1031 is tax-deferred, but it is not tax-free.”

The way it's marketed, you're supposed to make money in four ways: cash flow, capital gains, amortization and tax benefits.

So it sounds like I need experience to gain experience lol.

Gain some experience renovating an existing unit, develop some capital, increase your knowledge of the market in Louisville, and give yourself the time necessary to locate a good location to build. 

I’m thinking of selling while prices are still high , and paying cash for a multifamily or 2 separate properties to get a better ROE than I have now, however .. if I’m patient rates will come down in a couple years , not to 3% , but perhaps that’s my better strategy , then I don’t have to sell and pay capital gains, I can rent this place out & buy another with a refi at 5-6% is my guess - thanks !

There are definitely some swings happening in that market - but of course long term gains in California are generally a secure investment. 

This allows for a larger annual depreciation and lower capital gains if you ever sell. 

I got the drive just looking for any wisdom I can gain maybe even a mentor??

If you live in it at least 2 years, you have the option to sell within 3 years after move out and not pay capitol gains taxes on up to $250k in profit as a single person.