I am selling a piece of paid off inherited property for a large sum of money. I would like to purchase another property with a 1031 exchange but am unsure I would be able to find something right now and don’t want to buy something just to buy something. New property would be used as a rental. If I don’t know when I will buy another property should I invest everything and later cash some out when ready to purchase and pay taxes on the gains? Or hold enough for a down payment (approx $100k) on the side and invest the rest even if it could be years before purchasing? Or another option?
Background: debt free except primary residence with a 2.5% interest rate. Property for sale is not primary residence.