Sounds like a cash out refinance would be the best way to tap into that equity. 

While you don't exactly validate his claim..sounds like for many it might be moving that way.Is there any city that could make it a competitive advantage? 

(As appealing as that sounds)  Then you countersue them.

It sounds like you're really ready to dedicate time and energy into educating yourself about possible investments and I love that.

This all sounds amazing to me. 

Does this sound like a deal worth pursuing for cash flow?

It sounds like what you're doing is working. 

Sounds like an easily executable deal from what you've stated but likely need more color to offer path forward, terms, etc.

It sounds like you are investigating the DSCR route due to lack of investment funds. 

The rules are designed to prevent related parties from engaging in exchanges that shift high basis property for low basis property, followed by a sale of the low basis property, effectively "cashing out" without recognizing gain.If you sell a property to a related party as part of a 1031 exchange, both you and the related party must hold the exchanged properties for at least two years following the exchange.