I am selling house at 350K that was purchased in 1979 for 60k and is
rental property. House is completed depreciated. Current income is
$1500 per month. What is ROI for the period, and other financial
numbers.
I am doing 1030 exchange. My cash out is 320 K (30k is total expense
due to sell). What additional investment ( assume 6% cost of
borrowing) would provide similar investment return. What should be
future value of the house to sell that would bring similar ROI.
(Return on Investment)
If I cash out now, I will pay 90k in taxes. Is it advisable to cash
out and wait till housing prices drops? or what other option do I have
to eliminate this tax liability. One of the option I have considered
is to buy a house that I move in and live for the period of two years
and than sell as owner occupied. To proceed with this option ( I know
there are many assumptions) what kind of financial calculations can
help and what assumptions would you make?
 
Can you refer some case history where similar situations were
answered, educate me.

you haven't given enough information to calculate an ROI--we'd need to
know the cash you took out of the property during the years you've
owned it.  (plus whatever tax benefits from depreciation you gained,
valued however you choose to value them.)

I'm no good on calculating an ROI, but I do know that whoever
calculates it will also need to know how much money you put down on
the house, and how much you have received as cash flow from rental
during the time you rented it.

But, I am a fellow real estate investor, and I want to commend you on
your excellent deal.  You will be hard pressed to find an investment
other than real estate that will do for you what that house has done.

Depending on the stage of your life that you are in, I really like the
idea of 1031-ing into something you would eventually live in for 2
years and sell.  Things to remember, though, are that 1031 exchanges
are for like-kind property.  This means that you really need to
exchange into a house that you will be renting, at least for a year or
2, or the IRS is going to bust you, before you move into it.  If you
like this house okay, there's no reason you can't move into it right
now, live there 2 years, then sell tax free.  Just imagine...you have
a house paid off, and living there will make a $90K tax difference, so
you would be being paid $45K/year to live in the house.  Amazing!

Don't wait until housing prices drop, because the truth is, they
won't.  Right now, when the stock market is doing poorly, all the wall
street investors start screaming "watch out...there's a huge housing
bubble."  Look at history.  I bet that house you have has never gone
down in value, not even for a year.  That's a pretty good indication
that it won't.

Good luck, and congratulations.

The annual appreciation is about 8% (7.969...) but this is not an ROI.
 One way to take cash out is to take a loan on the property and let
the monthly rent pay off the loan.  There is no tax on loan proceeds. 
It may be possible to take the loan non-recourse.  Use the proceeds of
the loan to buy your next property.

There are not enough details on what you are receiving to determine
the tax on the 1031 exchange.  Buying/trading for a personal residence
is not a 1031 exchange.