There isn't enough information in here about the current state of the house to be able to advise you, but I would think #3 is a definite no as it seems unnecessary from a cost perspective although that market has scale to accept it.

That makes sense from a buyer and renters perspective.

When people take advice on here, they need to consider all things involved and not run with one perspective.

I always appreciate views from different perspectives. 

@Calvin Graves thank you for your perspective and experience! 

That puts things in perspective!

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Based on your response Katee you clearly have not read through my comments in any detail or tried to understand my perspective or concerns.

From this landlord's perspective, new houses suck.

I think THIS can be better than a 1031 exchange because the seller will start off with a fresh depreciation schedule in the new property.