Partial 1031 or Refinance

[Todd Beach]

Hey there Im new to BP and to real estate investing. Im trying to make the most profitable deal and need some input. I currently own 2 homes one I live in and one I rent. My 2 part plan is to turn an extra room where I live into a one room rental and sell my rental house which has very little cash flow and buy a better deal. I expect to make 140-150K profit on the sale of the rental. I don't have cash to finish the one room rental at my primary house.(need about 12-15k). My question is would it be better to do a partial 1031 exchange and finish the rental room and use the rest to buy another property or refinance primary home to do remodel and use the all the money from the house sale for the 1031 exchange. My plan for the 1031 exchange is a turnkey that i would pay cash for then be able to refinance later to buy another...which of course will be another discussion for a later date. Any input would be appreciated!