I've been aware of the strategy of using your 401k to borrow money from to buy real estate for some time now.

I've seen rates increase a little but not too bad.

If this is such as major issue that they sent a letter around, and they feel everyone should do it, then the best way to make sure it's done is they make it building wide project.When they do these projects however, they either increase the monthly fees for everyone, or do a one time assessment charge.

. $14/night AirBnB tax, and letting renters pay their deposit over the first 6 months of the lease, among other ridiculous laws), as well as increasing my property taxes 25% this year to pay for their wasteful spending, versus a more conservative government in Phoenix garnering less property tax and more relaxed rental rules.  

You are correct the oil boom has caused significant increases in property costs here.  

Those are some high taxes going back to 2007, with some very substantial increases year by year.

If exchanging the 1245 property ends up being no longer allowable there will likely be an increase in partial dispositions and retirement of 1245 property or valuations showing that the 1245 property has little to no value.

You can decide if you want to repeat with another detached duplex to quad leveraging your increased knowledge and experience or if you want to use your VA loan and increased net worth to buy a long term family home (no house hacking).This is basically a BRRRR combined with house hacking leveraging the VA loan. 

Another strategy one of my clients has been doing is picking up properties at auction or really beat up on-the-market houses and fixing them to increase cash-flow.

So the insurance change from a home insurance to a rental insurance (owner will live in one unit and second unit has a tenant) and the priced increased more than $100.