Combine the basement with the 1st floor unit and remove the kitchen. 

On the other hand, there’s a part of me that wants to just keep slow and steady without leveraging more debt and buy properties as I can save a 20% down payments.

but I’m starting to reconsider .Eating the Capital Gains will hurt a bit but we can apply the profit made towards some tax debt as well and then apply more $ to our primary condo out here and get relief of the PMI.OR do a 1031 .However, most people say an intermediary is necessary .I need to do research on how much someone charged for a 1031 .

I’m currently working on 58 unit BTR development project and seeking one or two private debt investors to help fund it.

@Joey Samudio, I'd recommend buying the asset with a normal 1031 exchange and then layer on debt for rehab after purchase.

I didn't realize this.I know you aren't on the lending side per say, but follow up question.If I have two buildings in my name with total debt of $900k and I am looking to refinance one of them that has $500k debt, would the 45% DTI be based on the total debt ($900k)?

I was just approved for $235k on my primary home and I have no personal debt.  

This leads to issues with refinancing and could leave you with less equity or higher debt than anticipated.

It could also be worth looking into short term bridge debt.

A couple of things: - If you put more cash down, perhaps there are opportunities on the debt side that emerge - can you find assumable debt?