Yes, the government pays the Section 8 rent timely, but more and more tenants are having to pay a portion of their rent.

As the owner of the property that is being severely mismanaged, do I have the ability to move the money directly to my bank through government action?

All the City, State and Federal Tax and Down Payment advantages are with First Time Home Buyers.

Check out the federal rules as there is currently a ban in place for most foreigners to buy in Canada. 

The 1031 exchange is a federal tax code and is not state specifc so you can exchange in and out of any state and in and out of any real estate investment (no flips or stocks).

Another downside is you loose on the advantages, of the Federal Tax Code, by not closing in the name of a LLC/ LLC taxed as an S Corp, or an S Corp.If you want to close in the name of a LLC/ LLC taxed as an S Corp, or an S Corp, Mortgage Lenders will offer you Commercial Loan Terms (25-30% down, a 15-25 year amortization, and a ballon due in 5-7 years).

@Jeff Shaver  Check with NAVY Federal or USAA for possible financing.

In Minneapolis, are there programs in place from non profits and the government to aid first time home buyers with costs?

Would the federal tax liability be $140k at year 5 for the sale, with long term capital gains (ignoring any Net Investment Income Tax)?

 $24,000 loan from the government at 5% or $1,200 per year for 15 years or $18,000 savings.