Consequently, it became hard to get the premium for a 3 bedroom/2 bathroom that you could 12-24 months earlier.  

After changing employers twice in the past two years I have accumulated (with employers match) $10,000 that I can use for my first real estate purchase, given this amount will be taxed.I plan on using this for my downpayment on my first property(even given the tax consequences).

But the 1031 allowed me to get more investment property consequently receive income from that exchange.

You want an accountant that can help you strategize and who is responsive when you want to know the tax consequences of the decisions you are making throughout the year.Good luck and let me know if you have any questions.

There are some tax reporting limitations an consequences depending on direction you choose but these should not hinder your ability to complete the 1031.The entity component of it also gives you some room. 

A consequence of this is properties will normally be listed with realtor on MLS;Canadian mortgage arrears rates are low (<1%) and defaults even lower in comparison to the U.S.A.  

A contract is a legal document with legal consequences.

and consider the consequences)I would give the offer anyways because the all cash offer may be lower than your offer.Also, don't get too set on this one property-- bidding wars are a drag and you may end up paying more than it's worth.

@Daniel Smith You can turn your primary residence into a rental with no consequences.

Shame on your QI for letting you do that with out explaining the consequences.