Plus if you do not have a well established team to get your project finished up before the end of the summer selling season, you may not get the return you were expecting as holding costs and declining values are eating profits.Option 2 sounds like a safer bet, but yes you will have to cover some expenses and may have to carry the property with your own cash until rent prices appreciate enough over the years to cover your mortgage payments. 

Hi @Mary Chen, If we are utilizing a 1031 exchange on the sale of this property the expenses you incur for repairs wouldn't necessarily fully translate to cash in hand at closing without potential tax burdens.

1031 exchanges are good for level up - income, age, location, appreciation. if you like what you have, keep them, if not sell them.

Santa Cruz, Monterrey.But I bet HOA Condo that would allow Airbnb would be zero.

It's turned out to be quite a good deal for us both, as they are paying all utilities, some maintenance, and have even contributed to some cap ex in exchange for a multi-year lease. 

I have considered 1031 exchanging, but as our buildings cash flow and are appreciating well so I have not seen much value in doing so.Thanks in advance for any insight and advice.

Unless you're in a place to do a 1031 exchange (which can have higher transaction costs, depending on the situation), there likely is a significant amount of capital gains to pay upon sale of a property for reinvesting, or if investing in alternate markets like stocks, bonds, CDs, etc. 

Your best bet is to borrower the downpayment (although, if your property doesn't debt service, you won't cash flow)

Rentometer as @Tommy Katzenellenbogen said would be another fantastic bet. 

We close July 9 on the duplex, and looking to roll the 1031 exchange ...