I think I can either make a decision to either invest in a different state and utilize the 1031 exchange, or use my FHA, live in the property, and sell and take the excess cash to use as I please.

Note as well, NFIP flood insurance only provides up to $250k in dwelling coverage which may or may not be enough to adequately cover your home--you can also pursue a private carrier which can get you excess coverage over the underlying NFIP 250k max.  

I am looking way to invest some excess cash and to hopefully turn into some steady supplemental income.

Having excessive positive cash flows and putting some of that into your pocket is considered to be good debt.  

I have the memorandums to go off of for those but they are like 100 pages, I like the material and the documentation but seems excessive. 

I want to pull out as much as I can so I can use the excess money pulled out for investment properties that give me cash flow on monthly basis.  

Over the last year we have witnessed increased average DOM, increased inventories, very much a slowdown in sales of higher end properties, excess of class A rental units (much of which came on line in the last year or so) and more. 

That person collects the rents, pays the bills and disperses the excess as directed.

@Jared Boundy Tax prep costs can be taken for the amount in excess of 2% of your AGI. e.g.

Seems that the amount of return for the amount of effort currently in the Denver market is excessive.