The issue is due to the floorplan, I am having issues having an idea on how to reorganize the kitchen.Does anyone know or recommend an interior renovation design that could provide a design idea?

Technically yes.

Has anyone else experienced issues when purchasing properties after foreclosure? 

Hatch for roof access.The landing on the third floor could (technically) easily be extended onto the roof - but realize there are code/safety considerations around that.

Of course, there is an issue of where do you live for that period of time to establish that you 1031'ed into another investment property...I agree with @Michael Plaks, I don't know how you figured that savings...As for "...harder to sell to potential buyers," the 1031 transaction is mostly transparent to them. 

With that said, I've found this the most successful part of the venture in the short period more so than the destination spots.Fortunately, no issues, but it's been a very short amount of time.

The main issue that I have is that the tenant has 2 more years left on the lease and in order for me to fix all the mess in the basement I would have to remove tenant. all plumbing, electrical and structural is potentially dangerous.How do I manage repairs if tenant doesn't want to move?

@Srini Murthy hopefully it is a non-issue if you pursue this property!

We went above and beyond for them before them moved out fixing things that I dont believe were normal maintenance issues.  

If I am the only member in the LLC, would that qualify for a 1031, or will I run into legal entity issues?