Once the tenants move out, we will take back possession and self manage. 

No special favors for family because they are most likely to screw you over. 

If you take possession of the money, your 1031 is dead.If you don't follow all the rules and meet all the deadlines, your 1031 is dead.A QI will help you every step of the way because they've been there before.

I'd say that is a personal question but I would not do a cash out refi where the fees make up more than 10% of my cash out amount, UNLESS, you need that cash immediately for a new deal where you will make substantially more money than the money lost, or you are also reducing you APR to a point where the interest saved will make up the fees over time.Also I just did a cash out for 50K where the bank I worked with had a low income neighborhood special and closing costs were only $500 bucks (lender fees, and title fees) so might want to shop around and see if you have any local banks that do something similar.

Filed an Affidavit of Adverse Possession and new deed through my real estate attorney.

Now let's meet the players.There are four key players in this equation and we will just call them A, B, C, and D.A: Possesses the title free and clear of the current subject property.

And if the mortgage agent is not able to really clearly map it out for you then seek out another mortgage agent that specializes in rental properties.  

You can rent these books from your local library and they are very helpful:Form Your Own Limited Liability Companyhttps://store.nolo.com/product...Your Limited Liability Companyhttps://store.nolo.com/product...Also, here is the info on doing it in the state of Alabama:https://www.sos.alabama.gov/bu...Typically if the structure of your LLC is relatively simple (only 1-3 members) and no special agreements, it should be pretty straight forward to get it going.

Owner-occupied conventional loans typically go as low as 5% and sometimes as low as 3% in special conditions. 

If not, and if all are only for certain builders, you would be offering something special in your market and perhaps command a higher price.