We are now talking to the mortgage lender (the same lender for the three replacement properties) about securing a significant line of credit using the apartments as collateral so we can do some other short terms deals with "cash purchases" then refi, etc.Are there any considerations or gotchas/ endangerment with this idea the regarding the original 1031 exchange?

That may be a bold statement, but the truth is nobody cares about the performance of your park like you will. 

She wants to keep it, so I agreed to take $30k on a buyout if she can secure funding, if not we sell and split whatever is left 50/50.

The deposit should be non-refundable if she decides not to rent your house, and convert to the Security Deposit if she does rent your house.

Basically I keep their security deposit is how it works. 

The money that can be made with flipping properties is very appealing, because my capital isn't on the high end I find it hard for me to secure a deal.

I've chosen to keep some equity in my properties with the intention of paying them off, sort of as security.  

Guthrie now lives in a rental a few blocks away.It’s in a safe neighborhood where private security guards patrol at night.

The total amount of damage is close to $18k, which far exceeds their security deposit.We sent an Invoice and broke down all the damages by line item and even gave them receipts for what we had and also estimates for the major items like damages to carpet (brand new and installed just prior to their tenancy) and major gouges and deep scratches in all major rooms (we have pictures of everything). 

  ( new construction)  My GC worked yesterday on our new build at 20 F st.. he said the town was abandoned and he got a lot done.. we had three under construction and got them boarded and secured.. but turned out not really needed don't know about high tide though..