My other question is Why aren't you renting out the $1800 side and living in the $1200 side?

Living there I happen to know several tenants aren't paying and there is no restaurant currently there and hasn't been for years. 

Most new development is well over this mark and, since there aren't likely to be many more complexes built that offer decent living conditions for lower-end rents, there is probably some room to raise Class B/C leases in the coming years as more people move into Louisville.And, if things do decline, the "luxury" crowd is going to be looking for cheaper digs. 

Rates aren't going back to 3% though.

They aren't super communicative, and I’d like to get a leased signed for September 1 asap. 

Perhaps you can call the local housing authority for some direction as they too would want you to do things appropriately.Can you ask the sellers to get them out before closing?

There aren't many syndications that allow 1031 exchange money to be used.  

They work directly with agents and should have a good sense of which areas in town are "most popular" for placing residents and which aren't.

They said if I show there place for future renters they will get authorities involved.

then how do I present all these offers fairly to my seller while serving all these masters who aren't paying me and still representing and maintaining my fiduciary duty to the seller?