1031 Exchange and Finding a New Property

[Mike Kratz]

I am selling a rental house I have owned since 2006. It has been a rental since 2012 and I was just notified the tenant will be moving out March 31.

So, I have a couple questions:

Should I talk to an accountant or has someone been through this before. I am trying to calculate how much needs to be added to the 1031 or how much I can offset based on prior costs. 

And...sounds like I will be in the market for another investment property or two in the Warren, Sterling Heights, Rochester, Auburn Hills, or similar areas. I prefer to find properties in poor condition. Does anyone have a best practice to find such properties?  I have used a Realtor for the last couple but, just curious. 

[Wayne Brooks]

@Mike Kratz There are 2 basic rules for the replacement property...

-You must purchase at least the same dollar amount as the sales price (less commissions and actual selling costs) of the property you sell. 
-You must reinvest ALL of the cash you receive from the sale of the existing property. 
You can add any additional cash if you wish. 
@Dave Foster can explain in further detail.