If we pay the tax (approx $900k) we then have $2.65 mil.

@Mark Bascetta There are a number of competent tax professionals commenting on the forums here.

This is when the taxes are due and the seller will recognize the gain.

You must individually own a set percent of the new purchase equal or greater than your selling property in the same tax paying name as when you sold.

Or is the tax implications of higher valuations cancel the positive effect?

Currently, we are leasing the property, generating a net profit of $380 per month and living in Missouri.We are contemplating the decision to sell this property and potentially gain $239-278K payment to buy additional investment properties in Missouri given the rising rental rates in the area, we anticipate increasing our rent and potentially securing a net monthly profit of $780 (annual$9,360).While we acknowledge a monthly profit, our concern stems from the apprehension that the property might not fetch as high a price in the next five years or that our HOA fees and taxes could escalate.Given this situation, what course of action would you recommend?

We've been working with an estate lawyer and they haven't been very helpful. 

For specifics, I can check with my CPA and RE lawyer, but they aren't experienced Property Managers. :-)Anyone else use a PM company to handle all of their rentals set up this way?

I'm a new Tax liens, deeds investor in the DC, MD, VA areas. 

Simply reducing the assessment and corresponding taxes reduces expenses and immediately increases the value.