With Market downturn, cashing out from one property and trading up into a new property while deferring capital gains tax is surging. Few simple rules  which you have to follow:

1. You have 45 days to identify a replacement property and 180 days to close from the date of sale of the original property. 45 days may place a lot of time pressure on a  part-time investor. But with the help of Dabbasi Realestate or other qualified brokers, finding a replacement property in such a tight window is quite realistic.
2. Qualifying property includes real estate, improved or unimproved, held for investment or income producing purposes. Property used in a taxpayer's trade or business includes his office facilities or place of doing business, as well as equipment used in his trade or business.
3. You can not carryover losses from original property to new property.
4. Your replacement property has a reduced basis for depreciation.
5. Upon the sale of the replacement property without an exchange, you will have to pay capital gains deferred from previous property and those from replacement property.

Check out https://www.1031cpas.com/Held_For_Requirement.htm to learn more about this investment strategy.