Want to use 1031 to buy better property

[Teresa Rex]

I am brand new to BiggerPockets and hope you can help me. I have a single family rental with $350/month cash flow, it is my only investment property. The property is in the lower price point (first time buyers). I would like to use a 1031 exchange to buy a better property in a better area with better cash flow.  I have never sold an investment property before. I am aware of the 1031 exchange's 45 day window to identify properties.  Should I find a new property and put in an offer before selling my rental, and make the offer contingent on selling my rental? Should I sell my rental first and then find and put in an offer on a new property?

Also, is using a realtor the best way to find a replacement property at a good price?

I appreciate any advice you can give me.

[Jane S.]

Hi Teresa

I am planning on doing my first 1031 to avoid cap gains. I'm planning on investing in a DST you should contact Dave Foster on this site. REALTORS arent the best source of info. Also it depends on whether you can find a better cash flow. Have you added up your holdng cost, hoeowners insurance, local property taxes, damage to house etc. It would help if you wrote where you are planning to buy, how much you will have to invest, etc. Maybe selling the property and using the gains to acquire another one would make sense if you can cash flow. Good Luck