And it can work really well for you as long as you pay attention to the statute requirements.In order to defer all tax you are selling investment real estate and buying investment real estate of at least the same value you sold. 

2 years to build a house is crazy.

The investor if they slip and the lender if they need to take the house back.  

Even if you rent the house for $2,000 a month, you will still lose because of maintenance, vacancies, and the expensive mistakes common with newer investors.You can borrow up to 70% of the equity.

Getting blinds for house 1 pick up blinds for house 2 /3 while you there.3.

If it is your primary residence as indicated, just sell it and skip the 1031I Persue all 3 payment options concurrently and see which pans out as your best deal.

You can still get cashflowing 4 units there though which sell mostly to investors, its just the sf and 2 units that have gone crazy on price recently.

@Eric Smith, It really doesn't matter who you are selling your property to - unrelated or related party. 

Suggesting to them buying their house for a wholesale range offer or lower dependent on the extent of the rehab, then having a contract in place that gives them a percentage of the profit to help get them back on their feet, paying off debts etc.

Are there great property managers that specialize in student housing properties?