whats a 1031?
Let's say you earn a 10% annual return on your money, and you pay taxes on it every year at 20%. You are have an 8% IRR.
Let's say you earn a 10% annual return on your money, and you pay taxes on it at the end of 20 years at 20%. You have a much higher IRR. I don't know how much.
So if you can reinvest your money in new investments without triggering your obligation to pay tax on the money you've made so far, that is more money for you.
If you sell a property, you pay tax on the gain. A 1031 exchange lets you trade properties without paying tax. So you can get out of your old investment where you already added your value and money and get into a new one without paying tax on the money you made.