Trading up in rental property

[Timothy Lin]

I remember hearing on the BP real estate podcast at some point Scott describing how selling an investment property after 5ish years and trading it in for a more expensive property was the right move financially. The reasoning, as I remember, was some combination of 1031 exchange, increasing ROE, and leverage.

Does anyone have a good resource or explanation summarizing the logic? In other words, what are all the benefits of 1031’ing a rental property worth 300k for a property worth 600k?

Thanks!