I understand that there are significant tax implications associated with what operating expenses you can write off (mortgage interest, taxes, insurance, maintenance/repairs, etc.) and also eventual sale proceeds (121 exclusion v. 1031 exchange), depending on the percentage/square footage you assign to your personal residence versus rental property.

We want to exchange the house for the condo and place a lien on the house for $50K.

Look into 1031 exchanges, these are a great way to trade up for more cash flow.

Builders won't give you a deal because you're an investor; to them you're simply another customer - likely one who's more concerned about price than anything else.You might be able to work out a deal where the builder shares in the profits at sale in exchange for a lower margin on the construction, or some other funky profit-sharing arrangement, but I wouldn't lead with that offer unless it's an especially juicy deal.I'd start by hiring a guy you feel comfortable with and then building a relationship.

Anyone in the Fort Worth, Texas area interested in meeting up to exchange strategies and ideas?

Offer something of value, exchange knowledge for work, and you'll find someone to help you get started.

I am close to entering in contract for an investment property and I’m considering a 1031 exchange.  

On the other hand you can work with an agent and put a ton of $ in their pocket in exchange for other benefits. 

@Bryan Falk-Steinmetz Worth noting too- If you have enough gain to be worth it you can do a 1031 exchange on the 1/2 of gain, and use your 121 primary residence exclusion for your half.

I'm sure laws and terms have changed a lot in the 10 years.You can also negotiate a longer lease in exchange for performing some upgrades.