Loans we can disposition in line with our capital constraints, knowledge and skill efficiently.   

Also any state taxes that might be exempt from a 1031 exchange.Once you add all of that up you should have an idea of the tax implications if you do not complete a 1031 exchange instead.For instance if capital gains, depreciation recapture, and other taxes amount to 400k or 500k that is substantial.If you are talking only 10k or 20k in taxes then it might be better not to exchange and wait while not being under the time constraints of a 1031 to buy another property or if you want to just take the cash for other things.1031 exchanges usually costs about 1,000 or so per transaction but can go up if they get more complex.     

I am from the east coast with my current home going on the market within a few weeks and even though I know that one can do REI from a long distance - as a hands-on person, that approach doesn't appeal to me.

SF real estate is likely going to start to diverge more from south bay real estate, much like east bay real estate diverged 20-25 years ago as population density grew and traffic became more of an issue.Additionally, as SF becomes more of a hotspot for startups and VCs, more and more of the beneficiaries of the successful startups will also likely start to move north into Marin, which historically has been reserved for the rich, old guys who were retired and wanted to distance themselves from the hustle and bustle of the city.

Here’s the dealThe property is a fully entitled condominium development within commute distance of metro Phoenix.

I would talk to your lender and make sure you understand all the constraints and consequences of the options.

I have a hard time trusting my neighbors, they're always staring at my house from a distance.

Anyway, some governments and merchants have started working together to revitalize cities and neighborhoods (appreciation), walking distance is becoming more popular (appreciation in small pockets), internet allows for more distance (unfettered) based jobs, unfettered jobs allows for more travel (airBNB and rental markets in higher demand), high unforgivable student debt suggests renting longer than previous generations. 

By using a trust to hold title instead of individuals the asset is distanced from the financial misfortunes of the beneficiaries. 

long distance investment bring you a lot headache yet?