Should I 1031 or is there a better strategy to keep it and borrow against the equity for another rental?

It just feels like I’ve been making a lot of short term sacrifices for long term gains and I have to be really diligent with money management. or I could also just try to borrow money for the renovation, and pay off the line of credit over time, but I feel like that really would limit me and if the stock market(my collateral) went down I could also see some trouble. 

What rate, term and amount borrowed did you get for the ADU build and what was the cost?

The rental income is approximately $4,000 per month, but every bank I’ve spoken to only allows me to borrow up to $300,000 against the property.

We want our borrowers to succeed and return again and again.

Typically real estate is long term, has tax write off advantages and you can borrow money tax free to invest in other opportunities.

Borrowing from family for a smaller purchase isn't the worst thing.Cash flow has been tough as of late with the higher interest rates.  

It is secured with  👇 Controlled Interest: We include our investors as a 51% controlling interest member on the borrower’s operating agreement.

I get it though, that’s the price we pay for having the privilege of being able to borrow money.

I suspect you spoke to bank employees who weren’t in their commercial lending division and didn’t understand your borrowing request.