Am I in anyway liable to the first buyer?

Am I even going about this the right way?

I hear something like this and I just think "Geeze, am I just missing the plot on this, I can get a bus, I can knowledge vomit, walk properties, intro" and hell, I wouldn't need $40k, I'd be happy at $1k. 

Am I able to raise the new lease by 262 and put the unit at the FMRAlso, can I find out a head of time if the housing authority will pay it ? 

what am i missing?  

So my question is how am I able to finance a house and actually have a lender approve me?

Or am I going to be paying taxes on the money I’m using as the down payment, since it’s not technically going through a 1031x? 

Should I still do some sort of addendum to the existing lease to have it in my name, or am I okay to leave until renewal in January?

Am I the one who is wrong here?

Am I understanding that if you do not add value to the property you cannot liquidate the money to reinvest, or does it just mean you could only liquidate less than you put in unless you wait for the mortgage to be paid off?