There are definitely some affordability challenges that's putting downward pressure on prices in many markets.

The situation we are faced with now is whether or not we should take a chance and renovate one of the units bathroom and kitchen prior to selling in hopes of making a return on the money put in for the renovations.

I have certainly put in more than 100 hours over this past year. 

Did you put in the rent you'll collect into this calculation? 

For me, being a remote landlord, the absence of vacancies is more precious than another $10 bucks, especially when that change creates a defacto risk of a move-out (that which I would rather not face).  

All about risk and reward.

I don’t want to put the money in to rehabbing it for sale as it would pretty much be a wash if I just sold it as is in the current condition as a fixer upper.

Between the 20k and the money I know I will put in to renovate the house it feels a bit overwhelming.

You have to put yourself in their shoes and try as much as possible to use logic, refer to the lease, but also be understanding where it makes sense. 

So I said its probably best to just pay the tax.If an investor overpay a ton, just to save on taxes, most likely they'll be inflicting significant financial damage to their portfolio… it’s probably best to opt out and pay the tax.1031s aren't structured in a way that makes someone "overpay" - it mainly comes down to poor planning which puts them in that situationNever let the tax tail wag the dog!