Since you're converting into a rental, your refi rate will very likely be higher since the bank sees investments properties as higher risk than primaries.If you have a lender you really trust you could talk with them about options but I wouldn't hinge your plan on anything miraculous happening on the bank's end.

Hence, you are not accounting for returns over the entire business cycle.

It turns out the extra cost high efficiency one would of saved the tenants a whole 10 bucks a year in electric cost.As others have said be careful of other charges like the venting of it, possibly the contract you are under for annual maintenance by them, and you mentioned possibly half the life cycle ?

It is also possible to start off with a regular Forward 1031 Exchange, sell and close on as many of your relinquished properties as possible, and then combine/merge the Forward 1031 Exchange into a Reverse 1031 Exchange, which would allow you to close on the replacement property with those relinquished properties that have already closed and then go into the Reverse 1031 Exchange, which would provide you with another exchange cycle/period to complete the sale of the remaining relinquished properties.  

I promise I will break that cycle.

California, but it was always either during a Buying Cycle I or II, not during a Seller Cycle II, which is where we are NOW and reaching the peak.

Download an app called sleep cycle.

So while I don't incur interest I still let the cycle reflect on my credit report as a payment (as my payment history on mint is reflecting this and my score has gone up since I haven't made a single late payment).

While the sale side of the market appears healthy it makes me question the long term trends and where we are in the cycle. 

We're late in this current cycle so you have to go hours in-land (far from coast) to find 'deals' in Cali that cash flow.