I have an offer of 500k on the property currently but the buyer needs to owner finance.

Also, when the first contract is signed do you take it to the title company or do you wait until you have the buyer?

In fact, it's standard to "leave meat on the bone" for the next buyer, so they deliberately will not complete every possible improvement to the property, and then the property can be marketed as such to the next buyer, along the lines of "25 units have been upgraded and the rents are $50 higher.

I have been experiencing awful conditions as a buyer, expected to pay record low cap rates AND accept giant material defects, quickly and with cash!

I am a first time home buyer that is in the market for my first owner occupied duplex/triplex in the Minneapolis or Saint Paul area (more so, Saint Paul).

My buyer then sold and  Assigned the contract to another buyer who assumed the terms. 

You've got to start by remembering that the requirements to completely defer all tax in a 1031 is to purchase at least as much as you sell and use all of the proceeds in the purchase or purchases.When you sell with owner financing you are actually creating two different proceeds that go into your exchange account - cash from the down payment from the buyer, and a note from the buy for the remainder. 

Then I sell the property to Tenant Buyers who give me $25,000 plus or minus down.

Wholetail (wholesale + retail): Sold to landlords, or home buyers who want to build sweat equity.

At 5 units you are looking at commercial loans so you won't be able to use your 1st home buyer credit so stick to 3-4.