I've done the math and after we sell, we could make $50-55k after closing costs/fees which would take care of my wife's student loans and help with a down payment on a nicer house that we could see ourselves in long term. 

My long term goal is to 1031 exchange a portfolio of residential investment properties (ideally all multiplexes, but probably some 1-2%/mo sfrs) into a larger commercial property, ideally 15+ units, with a much more hands off operation. with that in mind, would it be better for me to save up for a larger down payment and never live in my properties, only manage from within 50-75miles (my Dallas proper neighborhood is NOT in my current budget right now) or would it be okay to #HOUSEHACK my first one and then househack a second one in 18-24months, etc. anyone go down this path before that can offer some advice?

As a kid, did you ever play a game with a group of other kids and then like magic, all of the rules flipped right in the middle of the game?

One has a 50 unit and the other a 32.

I know I can ask the 1031 exchange experts directly here through private messaging but I think this can be a helpful conversation for some other members in the forum.I have a business partner that we own a commercial real estate together 50/50 in Silicon Valley.And both of us have our own residential rentals.One of our conversation was to 1031 exchange our office condo to a multi-family 5+ property. 

As Andreas mentioned, it's good policy to outsource your debt collection activities to licensed 3rd parties to reduce risk and stay compliant with rules and regs.

However your state law may exempt you if you follow strict rules/guidelines.

All states have their own rules. 

But these rules are specific state to state and sometimes even county to county.  

Looks to me that prices are a bit high right now not seeing very much that even hit the 1% rule.