1031 vs Cash out refi for buying nicer newer rentals?
I currently have a number C class properties but the high costs of turnover seem to be decimating a year or two's worth of cash flow so I'm looking to move to A class new construction sacrificing monthly cash flow for better appreciation in new developing suburbs and hopefully keeping more of the cash flow with more respectful tenants (lower turnover costs). If I 1031 I have to use that LLC that owns it to buy the new property so it has to be a business/commercial loan with 3.59% 15 yr amort with 5 year balloon loan. An alternative would be doing a cash out refi and buying new A class rental in my personal name to get a personal loan for 2.75% fixed 15 year (no balloon) and then after closing I'll quit claim deed the property over to my LLC. Do people recommend trying to keep old properties with cash out refi and the headaches that come with them or just move on and 1031 into nicer rentals but worse loan terms?