Dee & Keith - thanks for your quick responses!
Yes, I've been trying to familiarize myself on 1031 but haven't gone thru one yet. I will study the 1031advisor website, Dee! Fortunately, I do have a great tax guy who has been thru several and will walk me thru. I bought the CA house for appreciation, which doubled it's value in two years, and the TX house for cash flow. Our market is mellowing out a little but I'm hoping for a litle more growth to compensate for the refi before I sell. Tax guy estimated capital gains tax at 10-12% - which I hope is low enough for me to use profits any way I need at the time of sale so I can use OPM as Keith points out.
--lyngarc