REASONS TO EXCHANGE
In addition to deferring taxes and reinvesting savings, there are many other advantages to exchanging investment properties, including:

Leverage: Leverage your equity to acquire a more valuable property or properties.

Diversification: Spread your equity to acquire a more valuable property or properties.

Consolidation: Consolidate the equity among properties varying in value, type or location.

Cash Flow: Move equity from a low income producing property (like raw land) to a higher income producing property such as retail or industrial.

Management Relief: Trade property with excessive maintenance and overhead for managed property.

Increased Depreciation: Change property types to take maximum advantage of available depreciation.

Estate Planning: Turn tax deferral into tax savings by including 1031 strategies in your estate plan.