Steady cash flow, good tenants, homes will need to be rehabbed in a couple of years to upgrade finishes and rents

If it makes sense to sell and upgrade, you should almost certainly consider a 1031 exchange. 

I agree I think it gives more flexibility and options for the real estate, including cushions and providing upgrades for tenants. 

We originally planned to do leases only but pivoted to STR to maintain access to the older part of the property that will need gradual upgrades we aren’t immediately ready to fund.

Low rent tenants will not apricate or take care of decent upgrades. 

If so, then you know It would be good to upgrade to stainless.

They are appraising as 3 bedroom, not sure how that works. 4) The AC is 16 years old and will probably need to be replaced soon 5) The hot water heater is also old 6) Crawl looks clean but there are rodent boxes down there-like the ones you see near businesses so wondering about that 7) The house was in disarray, needs new carpeting and paint and some work in kitchen, no hardwoods.Would need upgrading if re-selling 8) master is odd, no linen closet in bathroom but there is one in master bedroom 9) no laundry room- they have the laundry in a bathroom in the kitchen. 10) The entry is odd and unusually narrow, as if they enlarged a room and it encroaches on the entry. 11) bathrooms are small.

A lot of repairs and upgrades were done to the side that I am currently occupying.

Upgrading counter tops can cost very little and immediately bring higher quality buyers and renters.

@Jai ReddyYes sir, we're going to be investing a little over $600k back into the property with exterior improvements, amenity upgrades and then will also implement an interior turn package of 2-tone paint, counter resurface, updated fittings & fixture along with appliances and flooring as need.