@Mark Kennedy,Dude....I...ugh...yeah, what everyone else just said....I mean I wanted to pop in and say something profound, but I found a zillion posts from the likes of @Ben Leybovich and @Steve Vaughan and @Andrew Syrios as well as others saying what I would have.Really, the answer is exactly go where the money is.

Then I factor in the side issues that can impact any of the parts of the equation - the neighborhood for appreciation & ability to rent factors; known capital expense issues, or those known to be upcoming; interest rates; unusual maintenance needs (example: I strongly avoid homes without eaves); local property tax and insurance anomalies; ETC.In your example I would run from that house like I would from a grizzly.

This will result in slightly less depreciation on the replacement property than if you had bought it without the exchange, but seeing as you only had the condos for a few years you shouldn't see too much impact from that.

@Jamey Newman Your bank balance has not impact on the FHA loan.

And how does that $320 impact your Net Income, and value of your property?

The next goal is maximal money to keep to invest, which means trying to minimize expenses to a level that does not drastically impact our standard of living.  

He is never home because he chooses to be not at home and it really does not impact you.  

How much has the falling oil prices impact the residential market?

A lot of different items, or terms, impact the attractiveness of the offer such as closing date, earnest money, seller concessions, your reputation, and where your money is coming from.

A property which offers 1st floor retail as well would be a terrific challenege that would allow my project to have even more impact.