To expand on what @Michael Plaks stated - yes you most likely can do a 1031, the next question is you should be asking if you should do a 1031.It isn't free to do a 1031 - you don't want to spend $2k in fees to have a temporary deferral of what would have been $4k of tax. 

You pay an annual fee of $3500, they do a soft credit check, then they give you a loan in monthly increments.

I was told by the Trustee, I could finance the condo instead of buying it with all cash.However, since this is auction property and doesn't allow someone to do inspection from inside most of the lender are suggesting that get a hard money loan instead of conventional investment loan.hard money loans are expensive (12% to 13% + origination fees).Does anyone has done this before with conventional investment loan where you don't do the inside appraisal.or any recommendations for lender who can help achieve this?

That lower rate might cost you more in up front fees, you might get crappy communication from the lender, slow or incompetent underwriting, or something that ultimately causes you to lose time, money and/or the deal altogether. 

I didn't want to pay double banking fees and put in the cash.

Keeping both residents (and collecting late fees) is an acceptable option as well.

And, I get why you view it as success: more deals = more fees and more chance to collect carried interest.But, the logic of this statement is purely beneficial to the GP and detrimental to the LP.  

GP's receive fees (acquisition fee and asset management fee) + some "sweat equity".Lot more that goes into it, but that's high level.I've syndicated 10 deals so far, I love the model!

Some of these are run by a leader and require a fee.

An example is deeding a property valued at $100k from your name to your LLC or vise versa, you're now writing a check for $4,278.00 just to cover the tax payment to record the new deed, not including the recording fee and any fees collected by the title company or attorney representative who facilitates the transfer.