Has a nice view but a unique situation foundation wise.

Do a cash out refi and combine it with the money I'm saving from other sources. it goes slowly in the beginning for sure.

I'd probably make a spreadsheet and forecast 10 years of principle and interest payments on many different combinations of financing to determine what is the most cost effective. 3) Lower your monthly overhead, save, invest!!!

Can you also shed some light on these unique portfolio loan options that you were able to customize with local community/commercial banks?

I've combined info from experience, research, discussions with other investors, and several CA attorneys since they all have varying answers, perspectives, etc...  

Even allocating a portion of the monthly rents towards the down payment is an exposure.Each State can have unique issues with this approach, so you should ALWAYS get legal counsel on this subject and  how to draw up the agreement. 

(Get a degree if you don't have one) (Get a masters if you have a bachelors) ("Work work work work work" -Rihanna)3) Use that money to buy strong CASH FLOWING houses (buy and hold)4) Keep saving, combine the savings with your investment income5) Use that money to buy more6) Keep growing the business7) Retire!

Another option is combine multiple properties so the loan amount is larger and worth the banks time.

Typing out all the possibilities & explaining the combination lease back & 1031 would be arduous .In a nutshell, for an effective solution you need to calculate her gain & then brainstorm solutions to solve the sellers situation.

I have ten rental units with a combination of SFH and duplexes.