It seems that your current setup may be more complicated than necessary.

To complicate matters, during renovation we found mold in the attic, directly above the current tenant’s bedroom area, and it seems fairly significant.

Negotiating on new construction is a different animal altogether, but there are techniques that you can utilize, especially when you are ahead of the development or negotiating with builder reps.

The thing is the process to buy, renovate and sell is not that complicated although the Internet gurus will make it seem mystical to most and sell their services to navigate through the wickets. 

Sure, it may bring a deal with more money...but that usually comes with more complications and strings attached, which can end up blowing up a deal.

Thanks for reporting on this, but I think you’re over complicating things.

I think it depends on your overall tax situation and if you have anything else complicated. 

The reason most syndicators don't allow 1031 money is because it complicates the legal setup of the deal. 

finding land will be the most complicated part in this area.

@Bob Ross If you are hiring a builder, it shouldn't be too complicated, just something that you haven't done before.