Having him easily saves us more in deductions every year then we pay for our taxes and I can sleep well at night knowing that a professional is looking everything over before we he files them. 

these issues are easily fixed by just putting more cash into them up front so your not having to feed them at the back end.. or better yet pay cash for them.  

The appraiser will need to come out and evaluate the new 4plex that you have and making sure you have the income to qualify for that new appraised value at 65-75% LTV and then you proceed with the cashout / rate term refinance. 

If an in-person visit is not feasible, we can easily arrange video tours to accommodate your schedule.

It's important to take the time to evaluate the goals and seek professional advice to ensure the right fit.

He will be selling the project to buyers once completed and not interested in operating.How should I evaluate this deal from an investment point?

Your accountant is critical to help you evaluate if a .1031 will benefit you. 

I’m not sure where you’re from or how long you’ve lived in Texas but I highly recommend moving out of state and out of your comfort zone while you’re young enough to easily be able to do so.

Or even just use the FB group where people bring deals for a finders fee, you evaluate and then pay a % to a TC to help close the deal.

This also leaves me with $3,750 stuck in the deal (not including financing and closing costs, which could easily add another $20,000).In total, if I had to include closing costs and financing costs, I’d have about $23,000 (if not more) tied up in the deal and lose close to $700/month before accounting for expenses.