In a 1031 exchange, you can identify more than one potential replacement property, provided that you satisfy one of these alternative rules:
The Three-Property Rule
Up to three properties regardless of their market values. All identified properties are not required to be purchased to satisfy the exchange; only the amount needed to satisfy the value requirement.
The 200% Rule
Any number of properties as long as the aggregate fair market value of all replacement properties does not exceed 200% of the aggregate Fair Market Value (FMV) of all of the relinquished properties as of the initial transfer date. All identified properties are not required to be purchased to satisfy the exchange; only the amount needed to satisfy the value requirement.
The 95% Exception
Any number of replacement properties if the fair market value of the properties actually received by the end of the exchange period is at least 95% of the aggregate FMV of all the potential replacement properties identified. In other words, 95% (or almost all) of the properties identified must be purchased or the entire exchange is invalid [except for any Replacement Property actually received within the 45 day identification period].
NOTE: The replacement property received must be substantially the same as property identified within the 45-day limit described above.