1031 exchange to what type of asset?
Plan to sell two SFH for an 1031 exchange. Never done any 1031 before. Need your input on what type of asset to go after. I know 1031 exchange has time pressure. I better to do a lot of homework ahead of time to narrow down a certain class of asset, its geographic location etc, before selling my existing SFH. Two SFHs would like to sell: one is in Bay Area with base 450K, now worth 1.3M which is only renting for 3.7k/month. Another one is in NC with base 265k, now worth 380k which is renting for 1.8k/month (this one can be optional as it doesn't have much taxable gain anyway). Both are currently in Month by month lease. Hope the new asset (target value 1.7M or a little more) would be:
1. Easy to manage
2. Prefer to be located in CA, close to NorCa is prefered or maybe stretch to Reno, NV that still would be in driving distance.
3. I am not looking for super high cap rate. Reasonable is ok. Key is stable and low risk (Not looking for partner or joint venture that seems would increase the risk)
So what type of investment and geographic location I need to look for?