I also feel like one unit with a 2400/mo price tag carries a lot of risk.

If he persists than say, you contracted these students to do it (which you should, and never be the person putting them up) and explain they got carried away.

The lot is 21,000 ft.He has said he has another offer to owner-carry but doesn't like those terms and especially a 30 year carry at his current age,  and can I do better?

I financed the best one conventionally at the highest appraised price possible, then had them carry the others at a comparable discount using some of the loan money as DPs on the seller financed properties.  

I read this section as the tenant needs rental insurance and includes a box for an amount that they may have no less than.My first question is am I reading this correctly and it just says the tenant must carry renters insurance?

The IRS considers debt reduction (when not replaced with additional equity in a new prop) to be the same as cash in terms of its benefit to you, so you would be taxed on the $125k you didn't roll over.If you don't want to carry a mortgage on a new property, you could sell, use $125k to pay off your current loan, and then put in an additional $125k of your own cash to make up the difference, resulting in $325k of equity in the new property/properties, and meeting both the equity and total value rules.So the short answer is YES, it is allowed for you to go from a $325k property to a $200k property while paying off your $125k loan, BUT you will pay taxes on the amount you don't roll into the new property ($125k).

Sometimes there are older bridges that need to be crossed to reach the final destination that cannot carry the weight.Generally there are special permits needed to move the house and only a certain time allowed to do it on the streets.

If you have the resources to collect rents, carry out evictions, and remodel to get things rent ready it can work.

Tenant upstairs let me know she saw him carrying out a tv and yelling. 

I have carrying cost for both of these properties and none of them are performing just yet.