Does anyone have recommendations for banks with a lower rate. 

Work on your credit first so you will have  lower interest rate.

Speaking for myself, I could do way better just taking the cash, paying the tax and buying great deals over time, than having to jump through the 1031 hoops, figure out the difference of paying the tax vs cost to defer, you may be surprised how much the 1031 will cost if you are buying several properties. also dont know how Cali works, but the tax rate may be lower depending how long you have owned/lived in the condo, and how you file taxes for it.  

Even your income savings of $1000 may have some risk to it, but it may be tolerable (i.e. low probability you will lose it or it goes lower).

And you might explore whether, in addition to your new rental residence, you can use the employer funding for an additional residence that has rental potential in a lower tax state (e.g., Texas/Utah) if you are permitted to work remotely for a portion of your time to reduce your CA state income tax burden.

There are very unique opportunities like working with government to build and provide housing, or create a business that renovates rentals for individuals with physical disabilities... flats with wider doorways, handicap accessible bathrooms, lower counter tops, etc. 

I am soon going to be a new landlord.The two family house that I am buying needs the sheet rock from the lower unit to be gutted and new sheetrock installed.

At the price point of $600 a month, is this a lower income tenant base?

You can also find out the pay-off amount to see if it's worthwhile to just pay it off.Then, it's just an additional expense (and lower utilities for you and/or your tenants)

Lower Manhattan has seen great Commercial to Residential conversion as a result.