A 1031 exchange defers all taxes by reinvesting in a like-kind property, preserving capital for long-term investments but adds complexity and future tax obligations.

@Li Li, Since the 1031 exchange will allow you to move into any type of real estate anywhere in the country. 

You can try getting a color match but that may or may not be a precise match.

For one, it's gonna help you position yourself with the value exchange.

You've also got 30k of equity in the property that you created, which you're choosing to leave tied up in exchange for that $100/mo.

@Jake Hughes A 1031 exchange is a great way to indefinitely defer all of the capital gains taxes, and gain access to that tax to use over time for your own benefit.

That is precisely where you’re wrong.

I may consider selling off my Indianapolis area SFHs to 1031 exchange to Nevada (Reno or Vegas, looking at those 2 markets) - I think my kids would rather have another home in Nevada (future primary, vacation home or rental) vs dealing with rentals 2000 miles away.

My exit strategy is to sell off my multi-family rentals and exchange them for single family homes in desirable neighborhoods.   

From utilizing 1031 exchanges to offsetting gains with losses, the right approach can make all the difference in your investment journey.