But if I had to be honest with myself, I sometimes do enjoy working at the company; however, at the end of the day, being an employee isn't satisfying enough - I want more out of life, which is why I'm here.

Both employee and employer sides.

Fellow BP member  @Dave Foster is a great resource on 1031s.With regards to the second part of your question, "cash out" received as part of a refinance is not taxable.

You might need to ask around at Huntington as not all employees know of the program.

I want her to work more hours, but I also don't want the IRS to consider her an employee.

One thing I would suggest to substantially increase your chances would be to employee yourself in your business.

Recently I hired an employee who is acting as project manager and also does a lot of the repair work himself when needed.

@Dave Foster is correct, if all the members of the LLC are willing to go along with the plan to purchase 5 separate properties.

then we have to hire more employees , then the quality goes down and or the price goes up .

@Dave Foster can plain it in better detail.