Markets like Texas (San Antonio or Dallas) or North Carolina (Charlotte) could offer better cash flow with lower costs.

.$300k mortgage at 7.25% (30-year): $2,046$300k mortgage at 7.6% (40-year): $1,996Technically, it lowers the monthly, but not by much once factoring in the rate adjustment.

Also, depending on the amount you get from your divorce, you might have more options. 

A 1031 exchange doesn’t apply, but funding through a self-directed IRA can defer taxes, though profits from debt financing may trigger UBIT.To reduce taxes, consider forming an LLC for better expense deductions, offsetting gains with investment losses, or holding the property for 12+ months to qualify for lower long-term capital gains rates.This post does not create a CPA-Client relationship.

My concern with declining values, increased inventory and a weaker economy would lower rental income and could potentially put me into a negative cash flow situation.

One long-shot option is to offer a lease at something like $1,300. 

I assume mountain towns are my only option for cooler in the summer without humidity. 

That higher interest will be a lower cost than the closing costs for the refinance so a net gain (depending on your new loan size). 

They have lots of options for you, depending on your budget.

This reduces exit options and affects the value. 10) Small number of small units is the most expensive residential development there is.