If you need financial help, ask under the "Finance, Tax, and Legal" forum.

Tax and Legal ConsiderationsUnderstand the tax implications and legal responsibilities associated with rental income.

This will also allow you to avoid taxes on the sale.

If you can’t do a 1031 to a non-income tax state, figure out a year when you will have lower income and tax rates ar as low as possible.

This is obviously much better than $1,400 per month.On top of that, you will now get 2x the depreciation write-off so your taxes should go down.On top of that, you will now get 2x the appreciation when real estate price go up.On top of that, your tenants are helping you pay down the loan, initially at about $100/mo for both properties, which gradually gets better and better.On top of that, you now have more units so if one or two goes vacant, you have more renters covering the losses of the vacant units.If you want to keep these properties, I would do a cash-out refi and go buy more rental real estate.

What's even more frustrating than asking the IRS help desk, is asking a Turbo Tax "Tax Specialist".

Feel free to reach out if you have any other questions! 

Shayan,Best option to avoid issues and stay risk free along with having a better approval chance would be to go with a Cash out refinance.

@Pratik as @Neil Narayan mentioned, cash flow is very challenging due to the property values, property taxes, and soft rental market.

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