,You have two options after a 1031 exchange. 

But I fear you must be on active duty in order to extend.However, there's another reason entirely that would send me to a 1031 exchange. 

Raj,  forget about the interest rates for now: if you are in NYC, I'd do a 1031 exchange out of commercial and into B or B+ area in NJ or even PA for residential.  

Using a 1031 Exchange we were able to defer capital gains taxes and upgrade to the VRC.

If you want to connect with me, so we can exchange contact info, I can email them to you. 

So the 600k includes paying off what they owe Unison. in the case of a refinance they would still live there, we would just be getting them out from under Unison in exchange for our names in the title and getting the house once they pass.

I do have to do a 1031 exchange to avoid capital gains.

I would maybe even wager you are negative or break even just looking at cash flow.

@Sree Todu,Your intuitions are dead right -- if you carry a note from your sale, the face value of that note is not automatically deferred with the 1031 exchange.  

That said, through conversations with brokers in the area (and evidenced in the comps I’ve created) I’ve learned that this strategy may be slightly outdated as most properties are currently at market rents given the current rental environment, expenses aren’t a realistic lever to rely on to add value, and there is a real risk I get priced out of the market by buyers with cash, 1031 exchanges, and with longer term hold strategies willing to pay an extra $10-20k per key.