I dont think the newcomers are going to push up prices.Some renters and homeowners will combine with family or friends when they can not afford it anymore. 

To fund the deal, we used a combination of savings, stock sales, and profits from another rental I have.

It may have been a combination of lack of urgency with the management company and just bad luck with the tenants.

I copied info from the Census and then combined the Bigger Pockets recommendations for what you should look for in a market as well as their recommended %'s which can be found in notes if you hover over the little triangle mark in the cell.

Next if you can find a Rent to Own (always a seller finance) and confirm with the current owner that you could sublease it, then you put 3.5% down to the owner and have a monthly payment which you would need to get more than to cover PITI,capex,mgmt.Finding a small portfolio lender / credit union who would maybe let you refinance your current lease and combine into one larger loan using your own home as collateral.

It has a good combination of cash flow coupled with strong economic and demographic fundamentals and a vibrant, diverse economy.

I combined about 3 blogs or posts I have done on the subject. 

But yes, in general there's ways to combine multiple 1031s from multiple entities into the same replacement properties.

Instead of replacing these two units, should I just combine it (per se) and get a High Efficiency Heat pump?

On balance the combination of these two changes adds $10,000 - $15,000 in purchasing power to a Buyer in my markets purchasing a property at the median price.Low interest rates drive asset prices upwards.