Your next flip could be an apartment and that could provide the capital to have enough buy and hold units to live on.On the refinance scenario, those proceeds will be used to purchase another property; so, you can look at them as debt on the new property rather than the current property having to cover that incremental debt payment.  

She will defer all capital gains tax and depreciation recapture as long as she purchases at least 400K and uses all 400K of proceeds to do so.  

There is nothing to say you can't go ahead and find your replacement properties now before closing your property and spend money with inspections.Remember if getting a loan that not all expenses can be paid out of the 1031 proceeds.

Then proceed to come up with an offer for the full package or the highest performing properties in the package. 

Since the property's ARV is so high, the man could move into a nice apartment and live the rest of his life on the proceeds.

So, I sent everything to my attorney and he stated, "My concern remains that they will charge the loan origination fee, and never deliver the loan proceeds.

Interesting, right at the bottom of the Personal Loan application page it says:"By checking this box you certify that your loan proceeds will not be used to pay for post-secondary education costs, or to invest in real estate or securities.

I have heard that on average, by floating the legal expenses your yield can be reduced to about 9%.If you foreclose, the property will be sold by the master commissioner to the highest bidder and you are paid from the proceeds of the sale. 

Account Closed is showing you another possibility - a consolidation exchange where you sell several properties under a 1031 exchange and use the proceeds to purchase fewer larger real estate assets.  

If so, you really need to research this further before proceeding and contact a local termite expert.