@Joe Michaels, What a lot of investors will do is to use the 1031 exchange as @Michael Plaks said, isto actually "acquire" additional depreciable basis. 

Don't leave money sitting on an exchange. 

Quote from @Jean Deeb: I would be interested in knowing more about this for a 1031 exchange.  

You lowered the amount you had/have to buy with your exchange.

Considering recent market insights, reallocating your $300K brokerage account into a multifamily property while keeping your townhouse rented could be advantageous.Warren Buffett’s Berkshire Hathaway has accumulated a record amount of cash, suggesting a cautious stance due to potential market overvaluation.

A mortgage lender can help determine if refinancing or tapping into equity might allow you to acquire additional properties.Consider a 1031 Exchange: If you're open to selling a current property, a 1031 exchange can defer capital gains taxes while enabling you to upgrade to a larger or more profitable asset.

Or sell using the 1031 exchange along with a partial 121 primary residence exemption There is a way you could take advantage of the 121 primary residence exclusion allowing you to take the first $250k of the gain tax free ($500k if married) and qualify for a 1031 exchange.Say you purchase a property as your primary residence (house hack extra rooms for extra income) and lived there for two years while stationed there.

Let me know if you’d like more insight!

Quote from @Fulati Paerhati: I am selling one property and planning to do a 1031 exchange.

I've been diving deep into the Albuquerque, NM real estate market recently and wanted to share my findings and insights with fellow investors.