All comes down to cost of funds.If you plan to use the money indefinitely, than a refi may be better given that rates will be increasing.If short-term, then risking rising interest rates on a HELOC may be better.

As long as you purchase at least as much as you sell you would indefinitely defer paying all tax.I can see two issues with your scenario though.1. 1031 is only for investment. 

I do think rates cannot stay at this level indefinitely due to debt, but if you think we're going back to 3% I would bet against that. 5% ish will be the new norm.

The 1031 portion that indefinitely defers the tax on gain and depreciation recapture is paperwork performed by the qualified intermediary who is the extra required presence by the IRS to facilitate your exchange.  

It can be deferred indefinitely and even permanently. 

Likewise, more and more people are keeping their homes as rental properties, thus leaving none for first time buyers to become homeowners, especially if they have historically low rates.Also, given that the government pumped trillions of dollars into the economy while shutting down factories and business, that also explains why prices should stay elevated indefinitely.

If each is rented for like lets say $1200 each = $21k/month. )  Also remember if you sell your rights, then you or anyone to follow would be restricted from expanding/increasing the size of your home/property indefinitely.

Hold indefinitely.

In such an event, the cash can be held in escrow indefinitely until the parties find a way to resolve the issue.All the best!

Hey @Taylor Robertson, First off, sorry about the situation you've found yourself in. definitely throws a wrench in the plans, but as you have already said there may be some upside to the situation.