To scale this route you need to have a good system in place to ensure you are profitable.

If you are wanting to take a big lump sum and put it into an awesome place in Scottsdale then I'd 1031 it. 

If the property is already built and in place with only one main for everything.

So at this point, no, you cannot pass the cost on to the consumer - this would place you above market rent and you will lose money through vacancy.

I have a renter in there now and am wondering if a cost-seg makes sense to do financially as I am planning to keep the place for 10+ years. 

I have had single women rent the place and then bring in their deadbeat boyfriends as live in until they are caught. 

One has no mortgage, their other has a HELOC for around $20k remaining and is coming to its 10year term that was established before placing with LLC.My predicament is how/best way to pull equity out of either property for a down payment for the 3 family that is valued around $450k.

We should be done by then and have everything in place.

Congrats on getting the property early and for putting in the grind to get the property in a better place. 

In my market, which is a fairly economical place to build, I am friends with full time builders that are in their properties about $150k/door for construction level finishes.