If you're open to expanding your options, you may want to check the Columbus OH market. 

Don't be so quick to indebt your paid off townhome until your learn creative financing and review all your options.

The condo will limit the rental options to age restrictions. 

As you get to this point your gaining more confidence in the options because you know option A and B had a certain outcome that wasn't option C, and this would give you more confidence you're doing the right thing for you.From there, I would be identifying properties to acquire if you don't already have some in mind and then my next sheet is creating the plan.

Hello, Starting to research about STR options/opportunities in Mexico (as a Canadian living in Canada).

I have heard about doing deals with little to no cash down but I'm skeptical about whether creative financing options are truly viable.

@Susan Tan you may also have lending options in the Houston area that offer 100% LTC financing for rehab projects.

So all of the gain and depreciation recapture are initially still tax deferred.However, like Joe said, the down side is later when sold  you lose the 1031 option. the client will pay tax on all gain and depreciation recaptured from before the 1031 also. 

If you need an option that isn't as document heavy, a DSCR cash-out might be a viable option if it's an investment property.

@Jerry Chilimidos,Here is a list of lenders who specialize in lending to IRAs and 401Ks:https://www.biggerpockets.com/member-blogs/2810/50272-list-o...I don't know where your rentals are located and how they are performing but selling might be an option vs doing cash-out refi.I would certainly consider option C.