There is still another 4-5 weeks remaining before completion (mainly due to the cabinet contractor being too busy). 

If you already have a residence, I would suggest remaining there and use $35,000 for you personal expenses and use $35,000 to search out a high end FSBO (above $500,000) If my understanding of Dodd-Frank is correct, you can conduct 3 transactions before the requirements residential mortgage loan originator license kicks in. 

Again, rent remains strong in those areas without the appreciation being seen in areas like Richardson & Grapevine/Colleyville.

This is the main reason S corporations have been, and remain, popular with professionals.Example: Mel forms an LLC to operate his accounting practice and elects to have it taxed as an S Corporation.

Then using the remaining money to buy a nicer, single family home for my family.Then...hopefully two years later, use the cashflow from the triplex or quad to purchase another multifamily house.

All the remaining first floor lines have been stubbed in with pex and are ready to go online shortly.

It's not a good assumption to think that an OK neighborhood will remain that way over the long term.

The "operator" and managers are very visible.Some people may want their ownership interest to remain out of public view.

You would have the right to hold back money, pay others to do the remaining work, and if it costs more than what he had in for it.....deduct that from his balance.

By law they would actually be required to turn the remaining security deposit over to the county, so that it can be held as unclaimed fund and potentially claimed by the former tenant.That's only if there's money owed to the tenant.