In your situation there is actually another factor that may work in your favor.Only the proceeds allocated to the sale of the building can be used in a 1031exchange. 

Having said that my allocation is flipping quickly. 

I think having a balanced budget would be ideal where you allocate money into buying another property and money set aside for renovations.

We’re fortunate to have an above-average income and live well below our means.This summer, we’ll be moving to Detroit (PCSing in August), and we’ve saved about $120,000 to invest in addition to having funds set aside for the home we’ll purchase in Detroit.The reason I’m posting is that I’m struggling to decide how to best allocate the $120k.

Assets identified in this study include:Standard windows and doorsInterior ceilings and wallsBasic plumbing and electrical systemsBuilding structural elementsBasic HVAC componentsThis engineering-based cost segregation study included the following methodology:Physical Inspection through a site visitDocumentation review including architectural plans, accounting records and construction documentsA cost analysis which utilizes engineering principles in order to allocate costs to their applicable asset classificationsCalculation of the depreciation schedule using MACRSAs a reminder, bonus depreciation started to phase out in 2023.

Still, my PPR fund investment is a great passive yield of 12% and that works for part of my passive asset allocation.  

Most on-market deals will likely not fit your investment criteria unless you allocate a substantial downpayment, often at least 30%-35%, or negotiate a price reduction that fits your requirements.Furthermore, while this is not the case for all metro ATL markets, my team and I typically see that a solid portion of the small multifamily space is comprised/orientated in neighborhoods of other small multifamily properties.

I need to allocate a certain rent to pay myself as I use 2 offices working as a medical provider (another LLC).

@JR Gonzalez, You can allocate the proceeds from your sale anyway you want. 

You can allocate those proceeds any way you want - as equal down payments or buy one for cash and others with loans - It doesn't matter a bit as long as you use all of the cash and purchase at least as much as you sell.