Florida homesteads have no cap on the asset protection (I don't know Utah's laws), so for folks like surgeons, I would set them up with an equity line rather than a first mortgage.

what is damage protection insurance? 

Good insurance, particularly with an umbrella liability policy provides very adequate protection on smaller assets. 

FHA has some time required before reselling  a property you just purchased, 3 months i believe but everything i’m saying must be validated for your own protection doing these things.

While many of these issues are important considerations and should not be ignored or overlooked, there are other more crucial criteria that you must question and evaluate first.The critical risk criteria that you must review and evaluate prior to making your final decision on which 1031 Exchange Qualified Intermediary to retain includes, but is not limited to, the following areas:Technical capability of the 1031 Exchange Qualified IntermediaryInternal processes and audit controls to safeguard your 1031 Exchange funds and assetsUse of Qualified Trust Accounts or Qualified Escrow AccountsDecision criteria and guidelines for investment of your 1031 Exchange fundsProtection from potential errors or omissions by the Qualified Intermediary (E&O Insurance) Protection from potential theft or embezzlement of 1031 Exchange funds (Fidelity Bond) An experienced and professional 1031 Exchange Qualified Intermediary will understand these concerns and should be happy to discuss these crucial issues with you.

If you think of your $80K like a game of chess, your money is your king—it’s valuable and needs to be protected.

Regardless of which state you choose, be sure to maximize your liability on your renters policy and get an umbrella - this will protect you more than any LLC will. 

I think this gives me good asset protection and allows me to take advantage of leverage. 

However, if it’s not necessary for liability protection, you might avoid the headache altogether and just beef up your umbrella insurance policy.What’s your take on this now?

So you could form a partnership but it would not be allowed to purchase the property, so you will not be fully protected legallyThanks for clarifying that they're not a first time buyer program, I am not sure why I had that confused.