I know we just bought it but I see huge upside/potential.  

I was in the process of building a bed and breakfast out of the country in St.

But since we know the process very well, we are able to 9/10 get rents than these amounts.  

Or it may be surface water flowing from another lot, or surface water piling up from rain and not soaking into the soil, which may be some type of backfill they had dumped in at some point during the construction process to grade the lot higher than it was when they bought it.

I made a mistake and forgot to ask the seller for rent history so I started the eviction process and the official eviction date is May 1st. 

I have several question regarding this situation, mainly just looking for a rough roadmap of where to proceed from here and to learn some more information to get a better understanding of the process.

They left a huge mess.

But the house is only 10 years old, it's huge, it's in a decent area that's still being developed (Eastern East SF Bay Area), and it has the potential to earn us some money.Does the earning potential of the house make up for the headaches of renting in CA and having to pay a boatload of taxes on the equity when we eventually do sell?

I did my first 1031 exchange with First American Exchange and they helped me through the process to ensure I was following all of the exchange rules properly.

Unfortunately Colorado is very tenant-friendly, so if you can avoid the eviction process that might make your life easier.