Financing question for construction

[Alex U.]

We are embarking on a construction project to build a 6 units onto a piece of land(30 yr fixed loan).  We have a few options to fund this, I was wondering what would be the best option and why?

1. Get a construction loan, ~10%, plus 2 pt, refi into commercial loan when built

2. Cash out refi 2 other properties residential properties, use the funds to build, keep original residential loan on land

3. 1031 1 or 2 properties to pay for construction.  I am not sure if 1031 funds can be used to pay for construction on already purchased land from over 12 months ago.

4. Is there another option?