Personally I’d do a 1031 to save $40k, I’d skip the LLC, increase the limit on my umbrella, and call it a day.

•If you can, raise rents or find ways to increase the property’s income before applying again.Have you already tried talking to multiple banks, or is this feedback from just one?

I’d recommend looking for properties that already have stable tenants or need minor updates to increase rents down the line.

As time goes on, I suspect that we'll probably see more deals as delinquencies increase with a worsening economy and we want to be in a position to participate if and when that happens.

Another rental is in a great area but has struggled recently due to increased competition from newly built apartment complexes.

The entire lots level has to be increased.

It's usually better to earn $200 less a month for one year than to sit vacant for two months, particularly in the winter.Consider a bigger drop for a 6-month lease to get through winter, then increase rent or find a new renter in the spring when competition is hotter.

There is nothing illegal about Subto when it is done legally, as you infer.Actually, Due on Sale is a result of banks calling loans due back in the 70's and 80's, simply because interest rates had increased and other spurious events like that.

Small Multi families are a great way to increase cash flow

I'm curious why your bank rate recently increased?