I found the house, comped the house, have already had contractors quote the few jobs necessary and will be employing my 16 year old son to do things like pressure washing and painting with me. 

I asked him why was he willing to sell it for so little and he mentioned needing cash to pay bills and how the property is 3.5 hours away from where he currently lives.

Be mindful of the wash-sale rule, which may limit your ability to claim a loss if you repurchase a substantially identical security within 30 days.Qualified Opportunity Zones (QOZ): While you mentioned this briefly, it's worth noting that investing in Qualified Opportunity Zones can provide a deferral of capital gains until a later date.It's crucial to consult with a tax professional who can assess your specific financial situation and provide guidance on the most effective strategies to minimize your tax liability, considering both real estate and stock transactions.

The financials are as follows:TSP(Government 401k):  approx $40kInherited IRA:  approx $115k (withdrawals affect taxable income levels)Cash:  approx $10k (recently paid off ALL consumer debt including car, so building this up at a rate of about $2.5k/mo)Precious metals:  probably about $20k worthReal Property: 4 houses#1: Single familyCurrent Mortgage: $163k (PITI = $970/mo)Estimated Value: $160kRent:  $1195/mo#2: Single FamilyCurrent Mortgage: approx $140k (PITI = $1088/mo)Estimated Value: $200kRent: $1385/mo#3: DuplexCurrent Mortgage:  approx $120k ($1120/mo)Estimated Value: $165kRent:  $825x2 ($1650/mo)#4: CondoCurrent Mortgage: $60k (PITI+HOA $853/mo)Estimated Value: $80kRent:  $850/mo  (I rent this one to my sister, so this one is a wash)So my questions are...

Now, I know that a duplex will not be a commercial loan, and will not use DSCR (will use DTI instead with probably 75% of rents applied to wash the mortgage payment, or something along those lines).

These rates are much higher than I can find in the Wash DC area.There's a short thread discussing these buildings at:http://www.biggerpockets.com/forums/88/topics/121516-help-with-analysis-of-2-investment-propertiesI'm going to be Omaha on Apr. 4, 2014 to walk thru the buildings.

The one I got for 8k cash (9k agreed price but tenant deposit I assumed liability and he gave me a 200 credit to power wash it).

They still use the water for bathing, washing dishes, washing their clothes, watering their lawn, washing their car and anything else you can think of.

His reason for selling was he had now started social security and with him living 3.5 hours away these properties no longer fit in with his plans.

Trouble was, he didn't have cash.