Although the Joshua additional demand is smaller, it is closer to DFW, which means its rental rates will be higher. 

I think most investors want to win on more than just the interest rate.

If you are selling for 1M after closing costs you could purchase two 500k properties in your exchange and own one cash and a mortgage on the second.

If the cash-out refinance option isn’t providing enough liquidity, you could also consider a hard money loan, though these tend to come with higher interest rates and shorter terms.

You may also avoid the seasoning requirement on a rate and term refinance. 

Pay the mortgage.

As you mentioned intentional flips are typically considered inventory-This means the income is ordinary income and as such: - Is not a capital gain, so hold time of 1 year does not change to a better long-term capital gain rate - Can not be invested in a QOF Deductions related to it can't be pushed or changed- all costs are accounted for with the inventory component 

Im currently in the process of getting it rolled into an actual mortgage since these are rentals.

I'm looking at monthly cost to seller vs. anticipated rental income, purchase price relevant to the ARV of the area and interest rate, balloon, etc.

This deal was the catalyst that got me into the mortgage banking industry.