With these sold, we were able to exchange some funds, grow the portfolio and stabilize the existing portfolio into a nice loan with a local bank.This brings us to September 2016.

In either case your exchange will report for tax year 2016.  

It doesn't have to be 'like kind' and you are not bound by the timeline unlike with 10131 exchanges. 

@Dan Robinson 1031 exchange is only available for properties it is your intent to hold for productive use in business trade or for investment.  

@Justin Young  Wow you are right you are good.I workout there after work all the time, for sure bro I can talk RE anytime just let me know I would love to exchange experiences and knowledge anytime 

To use an example that is more established, when you buy and sell stock on an exchange you probably have no idea what goes on in the background, nor do you care.

If your properties are paid off you could sell them and 1031 exchange into something else or refinance them up to 75% of the value and put the money to work harder in other areas.If you are asking where to buy A properties at C area values that is almost non-existent.

Also as Dave mentioned, the easiest way to bring in a partner is to acquire the new property in a tenants-in-common (TIC) legal structure, which would allow for the 1031 exchange.  

Being a newbie and working with an inexperienced realtor, my transaction failed to go through the 1031 exchange process.  

Now you may need to start more modestly and strategically 1031 exchange your way there, but that is a much more desirable end game IMO ... only thing better would be 40 free and clear units in Scottsdale, but if you start with reasonably leveraged units, you will end up with free and clear units in 30 years if that is your desired end game.