Need help understanding 1031 exchange figures.

[Toni Annis]

My first fix & hold just turned into a fix & flip. I need help with how to figure the numbers to make sure I don't get stuck with capital gains. Here's the deal... 3 months ago my husband & I purchased a mobile home lot for $25k. The lot came with a mobile home not considered to have any value do to its age (40 yrs). We put about $2400 into rehabbing and was planning to rent it. First renter in fell in love and wants to buy it. They're purchasing it for $45k. Our loan on it is just under $17k. We want to roll the $ into another property for buy & hold. I found a house for $37k but we think they'll take $30k cash. With about $20k into it the house would be worth upwards of $80k. Would this qualify for a 1031 though? How do you figure depreciation on a property? How do they determine property values; through purchase amounts or appraisals? Any insight would be greatly appreciated!