Comparable properties in the neighborhood are being torn down to erect bigger structures, but that's not my wheelhouse.

If you go the traditional 1031 route - build relationships and start getting deals sent to you, then, when you feel ready, list your property and really start hounding for your purchase.

So a traditional selling would not satisfy your goal of being able to leverage most of your equity for another RE purchase.Choices to avoid the CG tax include living there for at least another year or 1031 exchange.If you want to start investing immediately options include a refinance, but interest rates have risen, or a HELOC. 

From what I've seen, traditional financing through a small bank/credit union is probably my best bet.

I would start getting quotes and compare the cost to what you could get for an increase in rent.Don't just assume because it is a college rental you have to have 2 baths for 3 bedrooms.

How does that compare to a subject-to deal?

@Dmitriy Fomichenko or other Plan Professionals, I hear what you are saying about having different rules as far as capital contributions in a self directed account vs just a traditional LLC outside of such an account. 

I know most traditional lenders want 20-25% equity in the deal.   

Also, factor in that your turnover will be very high compared to most markets given the student population and low-income area.  

But, outside of having potentially lower closing costs, think about if it is worth it when compared to getting convention financing for 10 properties.