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I own a single house rental property in Hayward, CA. It is 6 months away from payoff the mortgage. It is renting $3200 per month for a long term tenants, section 8, good tenants. They don't have any plan to move so it is very reliable income and no hassle. I am still working in high tech industry so earning high income. Since the mortgage will be paid off, I predict to pay high tax when combined my W2 and rental income. Should I do an 1031 exchange to get a multiple property like duplex? or should I keep this property? I am planning to retire in another 7 years.
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If I had a solid rental property with reliable long term tenants cash flowing I would be hesitant to sell and start over in an effort to avoid taxes. As a high income earner with a solid investment property if you have your financial affairs in order consider diverting extra funds a low cost TSM index fund and let it ride. There is value in allowing yourself to enjoy the financially secure lifestyle you have created especially 7 years out from retirement.