I agree with the others who said you should sell the house. 

It will make the loans more valuable if you ever decide to sell them and decreases the chances of default. 

While I am normally in the do-not-sell camp, in this case it might just sell and buy at the new location.

They want to sell the property for $699,000.

If not I wouldn't bother selling as there is an incredible amount of money lost in buying and selling properties, so you have to make sure you have a plan to maximize the equity and actually have enough. 

Additionally, your brother would inherit your cost basis in the property, which could result in significant capital gains tax if he sells the property later.

@Ilia Zakharav, There's no problem in selling individual units and 1031 exchanging them as individuals. 

I think partially because a lot of folks don’t even check it.If you’re interested in getting more off market deals I would suggest starting relationships with brokers that sell the types of properties you’re interested in.

As already mentioned, you could sell via seller financing to lower AGI, as all you would have to claim is the payment income - until balloon payment received.Did know an investor that had 14 properties paid off and he moved into one every two years to then sell with the $250k single exemption.

Selling the rentals via installment sales could also spread out tax liability.This post does not create a CPA-Client relationship.