To avoid all taxes you must purchase at least as much as your net sale (contract price minus closing costs but before mortgage payoff) and you must use all of your net proceeds (net sale minus mortgage payoff) in the next purchase or purchases.You can purchase less than what you sell and you can take cash but you would pay tax on that amount while still sheltering the tax on the remainder of your 1031.

Whereas it needs updating I think it may be better to sell it on a land contract.

Are contracts fairly easy to understand?

@Nghi Le is right to consider transfer taxes (I am just talking about income tax in my post).Just make sure there isn't a "Due on Sale" clause in the contract before you do the transfer.There may be some solid tax strategies and significant savings around entity structures available if you plan to make this something you repeat.

We're under contract on a house that needs some minor foundation shimming and a complete replacement of cast iron pipes in said foundation.

At present im self employed in an IT business where I make decent income, but its all dependent on contracts.

Based on what you've said, don't worry about what exit strategy just yet, but focus on getting a signed contract if the numbers add up. 

I want to finance for purchase and cash out refinance some other properties which I own with 100% equity.My credit score is 740.My work contract is limited and will end Dec 2018.

For example:Taxpayer has his Roth enter into a contract to buy a property for a mere $100.

It's been a slow go since then, but the one I'm under contract on I found through my local REIA @Christian Lewis.