Advice on where to go, how to best use our $, 1031, ?

[Emily M.]

Hi everyone. We have a three flat that we live in and rent the other two units. 

Right now one floor is occupied by a paying tenant and another is vacant but almost ready to go.

We have a baseless lien that we're litigating on this property for about 30k.

Some numbers:

We're carrying about 110k in unsecured debt due to additional renovations, student loans, etc. All kinds of stuff. About 50k is due to the house; the other 60k~ is student loans.

Current total mortgage: about 278k @ 4.25%. It's FHA so we pay $200/mo in MIP, which would go away if we refi'ed.

PITI: 2800/mo

rent for one unit, currently occupied: 1500/mo (if they renew, 1550; if they move, market is probably 1650+ for this unit)

rent for other unit, once rented (not rented currently but could be ready to go in a month of weekends): 1750/mo or more

rent for our unit, if we wanted to go there?: ~1800?/mo

property is worth 600-700k when finished/totally fixed. Still needs 15-20k worth of work to be sale-worthy, mostly basement and common area fixes. 

we need to take money out, obviously, at the very least, and would consider trading it as well.

Should we sell? Keep? Trade? Try to releverage once we're out from our baseless/nuisance lien?

Should we bond over the lien? That could require 175% of the lien, which is a significant chunk of cash, and I don't want to put that money at risk if I don't have to. I'm just concerned we have too much in this property.