Combine the cash, 1031 and debt to launch into a much larger asset MF or commercial (or several) - consolidation exchange.2.

Consolidation into fewer more expensive properties - maybe one with onsite management.2. 1031 into really nice transitional properties to slowly convert to primary residence over his retirement.3. 1031 into NNN commercial properties 4. 1031 into commercial fractional properties that are 1301 compliant. 

If I had 2 single family houses that each have 100k mortgage on them, would a portfolio lender be able to consolidate and create one loan for 200k?

They will look at your income on a consolidated basis, no advatage.Now, what you have is a rent-buy decission, nothing more.

I have considered backing off my plan to purchased building #2 with a 401k and saving that as an emergency student loan consolidation plan since I'll be paying myself 3%.

I am considering making the top floor a 3/2 by consolidating the bedroom from the first floor to make this one unit.  

The different capital account are simply consolidated in the books of one LLC.

Some thoughts on Storage as we own some and are putting some ground up 3 and 4 story infill deals together currently:There is consolidation going on with larger groups strategically buying off some of the "mom n pops" with that, these large owners have VERY professional management.Storage has become an Internet search and SEO game more and more, and the big REITs have armies of analysts that spend all their time managing the search marketing efforts.If you are going to invest in a deal, I strongly recommend you get a larger management company, large regional firm at minimum to manage the property and internet marketing efforts.Locations is very important, you should be very convenient near other retail uses, BUT you do NOT have to be MAIN and MAIN due to most customers initially finding their facility through mobile and internet searches.There are plenty of areas overbuilt, but also plenty of under supplied areas, the critical analysis is within that 3 mile radius.

It's around $500 annually.I've been trying to consolidate my various policies as well but have not yet found anyone who can.

Did you start with 5+ units or have you consolidated a larger portfolio into your 3 units?