There is no point in doing a 1031 exchange if you expect a loss from the transaction.A 1031 is meant to defer your gain.There are numbers which you can analyze and stress which is not easy to analyze.It looks like you are stressed with this investment and I would sell.I personally, however, would look to make the improvement for $10,000 to get one of the other units up and running.

I will actually be up in NYC in April so we could also connect in person before you come down.

Intangible assets like goodwill or tangible personal property (e.g., equipment) are excluded from 1031 treatment and are taxed separately—goodwill is typically taxed as a capital gain, while equipment may be subject to depreciation recapture taxed as ordinary income.To minimize taxes on the sale of the business, consider strategies such as Opportunity Zone investments, which defer gains until 2026 if proceeds are reinvested in a Qualified Opportunity Fund (QOF), or structuring the sale as an installment agreement to spread taxable income over multiple years.

If you are only looking to be the person to flip the deal then you need to find someone willing to find the deal and someone to find the money.A HELOC could be good if you have the equity. 

I personally like the BRRRR strategy - it's not easy to pull off but it's simple and it works in theory. 

Real estate is a wealthy persons game. 

But of course were running into the same issues as everyone else, finding a property that actually cash flows, specifically when rented out the traditional way with just one person on the lease.

Interesting, I bet she is a unique person.

I'm willing to help this person in any way I can.

not my sandbox personally..