I guarantee if you do that, yes, you will got some seller financed buys, i bet you could get some sub-2's. 

@Bradley Hendrix, You can allocate the proceeds any way you want, as long as you purchase at least as much as you sell for, and use all of the proceeds in the 1031 exchange.You could sell the apartment and purchase Two SFHs with a 1031 exchange. purchase one for cash and the second with debt.

I would RUN from this 'Contractor', his attitude is bad and you will have other issues with him I would bet...

The benefits of selling as a portfolio is that when you do a 1031 exchange, you won't have to coordinate the sales of multiple properties, And this would minimize the amount of individual exchange fees. 

Networking and asking others in your market may be your best bet.

Zillow’s Market Reports: These show market appreciation trends across different cities, helping you spot high-growth areas.5. 1031 Exchange:If you sell your current property and reinvest in a higher cash-flowing property, you may want to consider a 1031 exchange to defer capital gains taxes.

Just sold my 3 unit and did a 1031 exchange into a 6 unit.

Consider bringing in a partner who can help fund the rehab in exchange for a share of the profits.

High-demand areas with strong economic growth and low vacancy rates are typically safer bets.

Large swings can be exhilarating, but a good investor does not bet the entire farm!