I have nothing to sell you nor no dog in the race. 

We could say all kinds of things about how he could have avoided it, but any advice in that regard is like closing the barn door after the horses are gone.I suppose he could fix it up and just live with very low returns (probably not too much better than with a bank CD but with a ton more risk), or try to sell it now and just cut his losses and move on, hoping to do better next time and make his money back on the next deal.  

I may be putting the cart before the horse but... can you pee qualify for cash out refinancing before you buy a property?

I think the responses you have already gotten provide a great deal of insight, so I won't beat a dead horse there.One thing I did not see mentioned as a factor, though, is your local market.

Rush hour is so much better when I am listening to education about how to get out of the Rat race. =)

With the 1031 there are certain dates that have to be met or the exchange could fall apart.Joel Owens has mentioned seeing big commercial buyers racing a 1031 deadline, and ending up either settling or buying a deal that didn't fit what they were really looking for.

And they talking the sellers.So what's the argument, the cart before the horse?

If I had gotten on my high horse, and refused to pay a broker a buyers fee, my partner and I would have foregone a profit of in excess of $119,000 (our legal bill was $1500) on a 202,500 investment in less than 30 days.

I agree, before you get on a race bike for the first time, you should know that cranking back the throttle in first gear may not end well. 

Slow and steady wins the race.