I am not saying it can't be done (heck, I've done it), but my advice is to minimize risk!

If not what would be the best way to reinvest so taxes would be minimal?

In my experience, appraisers are open to looking at what you present to them as long as you’re respectful and not wasting their time with comps that are obviously worse.Explain the neighborhood highlights.

You wasted their time (in their opinion) by not being able to perform on your end.c) This is a business... 

The niche of investing should have minimal impact on that. 

We also would like to be able to put minimal debt on it (HELOC or Cash Out Refi) eventually.

Otherwise, you might use all 20 to get there, which is a waste of time.

To be very honest though, my capital (as most recently graduated college students) is minimal.

I'm wondering what's everyone doing to minimize this double cost...

I don't want to waste my time learning a new town just for 6 properties).