Also, what can be rented out easily, in terms of size and number of bedrooms?

You get your money without the tax hit at the moment and hopefully continue to profit off them,   If the objective is long term passive income, it doesn’t make sense to sell them… it moves you away from your goal post.  

The sellers agent would not be required to tell you as the buyer (or your agent) the terms of the other offer or what the seller finds appealing, his job is to get the best "offer" for his seller, not necessarily the best "price".

Long-term tenant that always pays on time.

Most lenders do not like these lower property values because they are too risky of an asset class, little return in interest and fees, and long term financing will be an issue as well.

Just depends on your long term goals. 

This can potentially enhance long-term wealth building.Tax Deferral-By reinvesting your proceeds into like-kind properties through a 1031 exchange, you can defer capital gains taxes, allowing you to reinvest more capital.Market Timing-Despite the competitive market, a 1031 exchange gives you a defined timeline to identify and acquire properties, potentially putting you ahead of other buyers who might not be as motivated by a tight deadline.Cons:Lower Initial Cash Flow-Acquiring additional properties may reduce your immediate cash flow, especially if properties in your target market are not as cash flow positive as your current property.Risk of Overpaying-In a competitive market, there's a risk of overpaying for properties just to meet the exchange deadline, which could impact your overall returns.Either one is a valid option, but overall it depends what your financial goals and restrictions are.

Peoples sexual or religious preferences are none of my business but do they follow the terms of the lease is what I am concerned with.

Is it that simple?

If you want the best terms now because you dont want to refi, see what they require for seasoning for the performing lease to override the appraisal.