For those who are able to save more than $30k a year or have substantial liquidity (over 200k), being a landlord and especially flipping is a lot of work.

A GC that works on the job, manages subs, gets permits, works with engineers, designers, etc. will have substantially more time into the project than the rest of you combined, easily. 

The 1031 exchange is one of the most powerful tools that a real estate investor has to build substantial wealth over the long term.

You could sell the note on the open market but it would command a substantial hair cut.So there are really two answers/options.1.

The property is 6 units and the rents are substantially below market for 2 bedrooms in this area. 

For the purposes of this section, a tenant shall be deemed to have relinquished possession of the premises upon any of the following:(1) Execution of an order of possession in favor of the landlord.(2) If the tenant has physically vacated the premises, removal of substantially all personal property and the providing of a forwarding address or written notice stating that the tenant has vacated the premises.

Even if it is not a savings but close to a wash, I would still consider the refi because it would give me the ability to substantially increase the limits on my existing HELOC. 

If I buy a note with a substantial overage as a lender I am entitled to collect it before the borrower.

However, he likely will have to pay Mortgage Insurance which can be substantial.

Obviously the monthly income drops substantially and so would the percentage you receive.