My tenants aren't the brightest so i didn't want to catch them off guard, want them to understand where this is headed.

Start from the end and try and catch up to the beginning.

This is especially important when the capital gain rates might be increased in the near future.The calculation is not something simple, because it involves things like capital gains and depreciation recapture, as long as potentially a reserve of carryforward suspended losses from prior years and/or catch up with unclaimed or underclaimed depreciation.If the tax is significant, you cannot use a 1031 exchange to purchase a residence.

So, your situation maybe a catch-22. 

The one catch is that I had to have the downpayment first, close on the deal, the execute the seller financed 2nd mortgage which would essentially reimburse me.A few things to watch out for, of course make sure the numbers work with essentially 100% financing. 

Heres the catch, in 1.5 years my family and i will transfer back to Charleston, SC and i will leave the Navy.

New construction is also still catching up from the recession years...people thought things were cooling off when interest rates started going up.

@Jack Medford it’s hard to see supply ever catching up with demand in Madison metro due to entitlement constraints, high employment, and lack of raw dirt due to environmental aspects. 

It's sort of a catch 22 for newer investors- high performing agents will only take the time with clients that have legitimate chances of completing a transaction.

However, you can still give notice and see if the tenant is willing to move out.I would serve notice and demand they provide a written plan of how they intend to catch up OR that they vacate within 14 days.