If you can rent 3 units for $2,000 you are close to breakeven.On the plus side, you will have a highly attractive asset and several decades without much cost of capex and repairs. 

The 1031 first would make sense if you needed to reposition to make it more attractive for a refinance or move it to increase cash flow first or change sectors. 

I’m looking to ensure I structure things correctly and attract the right partners.

Are there any repair alternatives we should look into?  

The best way to solve this situation now would be by ensuring you've presented the units in the most attractive way possible.

Like you said, probably not so easy here in MA but you did give me an idea about alternative uses...I typically focus on properties that I can make buildable by solving zoning issues, access issues or minor wetland issues.  

Nothing attracts buyer leads like houses for sale.

Build a system that attracts the right audience.

On the other hand, if you’re financially secure, the low-rate loan and potential appreciation make holding more attractive.

Are they located in a touristy area or near attractions?