The kitchen is on the first floor, and all the bedrooms are on the 2nd floor with a bathroom.

Selling and move on.  

My concern is doing the cash out refi on my other rental and causing a new and much higher payment on it that I can't just pay off like a loan.

My plan is to mainly focus on cash flowing properties that make the 2% rule. 

A self-directed IRA or 401k can be a great vehicle for loaning money to others without getting hit with taxes on the interest income.

You can use this property to hedge any others that you add that may only cover themselves, or require supplement until they are paid off.HOWEVER, if you have decided that your goal is to use Real Estate as a stepping stone to build wealth by upgrading the property you hold each time (condo to house, house to 4-plex, 4-plex to 8 unit, etc) then I think you are right to sell now while you think the property is at the top of it's appreciation.It will be hard for anyone on BP to tell you what to do as we don't know your goal.You are right. 

This is the silver lining to our current market.

Can I advertise here on BP or is this going to get me banned?

They should be bale to guide you more based on what you are looking for in the area. 

I am looking at 1031 possibly or just fixed refi/or use my heloc for the time being on a value add for a building 10-40 units (market dependent on price).