I would also verify from a licensed realtor how much rent would be and how much selling it would be..

When you sell a property owned by the IRA - this is not a taxable event.

Also, resale value if you decide to sell down the road.

The exit strategy is to sell each townhome individually, since each will have it's own legal description. 

I am "selling" exactly NOTHING. 

Each of your homes will start at a lower cost basis and you will get slightly less depreciation each year to offset but you have spread that depreciation over multiple properties so now selling any one property will result in less impact on taxes than just selling your first without a 1031. 

Quote from @Cooper Meurer: Lately, I have been mulling the idea of selling my primary residence and renting for 1-2 years before we leave the Midland area and move to the Texas Hill Country (surrounding Austin area)Reasoning for this:- I currently have around 120k in equity in my residence and I have a 4.75% interest rate. 

Are you certain you would have to sell at a loss?

I always have a plan B and if I can’t flip the lot in 60 days, I’ll sell some stock to avoid the IRA penalty.

If you're not willing to raise the rent on your tenants, I would sell it.