If they have been long term tenants they might be worth retaining.

If we were going off the guidelines at the company I am at you'd only need the BPO/appraisal to come at a value which would make your loan 80% LTV or lower.I dont know the guidelines at your specific bank but I get what you're saying on overlays, yes they typically make things more difficult and 75% LTV is more difficult perhaps your mortgage company knows that its harder to get 75% LTV so they can retain and service your note longer and make more money so they make it more strict? 

We would discount the cash out a bit considering the LLC would retain the old basis and the 1031 liabilities.  

This is with the assumption that we would not need to do any major electrical or plumbing work while we are in the walls.

I am currently under contract for a duplex and just recently had inspections done. In the inspection it was discovered that the house may have structural issues. Inspector explained that there is a horizontal crack in...

New cabinets, new counters, new tile on the walls in the bathrooms and around the showers.

Do you need to replace the plumbing and electrical system behind the wall?

At 3 units and im already running into walls

Questions: 1) what product did you use to glaze or paint the bathroom wall tile? 

It will be a fairly large job - new kitchen, take down some walls, refinish hardwoods, etc.