Since it sounds like most of the debt on the properties are not even on-title (business lines of credit), you'll have access to the most funds as a lump-sum this way through one transaction as opposed to individually refinancing them. 

Then saving the extra money for an emergency fund as well as your next down payment is much more important.Also when you go to get the second mortgage the bank is going to care more about you having reserves (more cash or assets that you can easily make liquid) than seeing you have paid down you mortgage some.  

This tax is a rent grab- an attempt for the city to increase revenue without providing any public service or accountability for the use of the funds.

I am just learning about DST however it seems like it locks up my funds and is complicated compared to what I am used to which is simply managing rental properties. 

Also, my relinquished property did not have any debt.Can I purchase the property in a cash transaction and thus satisfy the 1031 exchange, transfer our interest in the TIC into an LLC and then cash out refinance to have funds ready for the next deal? 

Im in the same boat as you right now, except my investor is just providing the funds, leaving me with everything else.

I typically put aside 3% of the purchase price into a CapEx fund and monthly transfer 10% of rent.  

@Andrew RiggsI would look into investing the property using Roth IRA funds as the gains will grow tax free.

Does anyone have any ideas/suggestions on how to get funding for this? 

There's a reason it's hard to get funding for this type of investment - the risk is huge.I know that's no answer to your actual question, but I definitely question your desire to do this.Good luck to you and please let us know how this turns out!