Tax-Free Exchanges: While 1031 exchanges aren't available to SDIRAs, the tax deferral within the account means you can sell property and reinvest proceeds into new opportunities without immediate tax consequences.

Now they are charging $395 per 1031 exchange!

I’m a full-time sales professional at a global GSI, so I’m seeking relatively efficient strategies.Has anyone successfully used cash-out refinances, 1031 exchanges, or other equity-based approaches to boost income?

Your reinvestment targets for a 1031 exchange would have you purchasing $700K of replacement real estate using all $500K of equity. 

If you wanted to do a 1031 exchange down the road to use that equity and trade up then that'd be a good idea.The homes I’m looking at buying are in the 330,000-350,000 range.

the note is converted or exchanged for credits?  

Or any amount of cash you take out from the exchange are considered to be profit. 

Use 1031 Exchanges to Defer TaxesIf you’re selling a property, a 1031 exchange allows you to defer capital gains taxes by reinvesting the proceeds into another property.

So yes you can exchange it to save capital gains taxes on $266k plus 19 years of depreciation recapture.

While my husband and his ex make a similar income and do not exchange child support due to us pointing that out in court a couple of years ago, she actively request all financial documents that she possibly can and examines our taxes, etc.