That is someone wanting you to hand them a steak dinner to eat and then has a knife ready to stab the hand giving them the food.No legal advice given.  

What I might say is to take on a light remodel with your first nest egg you're using.

When I go out to eat and pay for a meal is that a conflict of interest? 

Mind you, it might not be such a bad thing if you plan to hold long term.I believe they invest there themselves so, in a way, they're eating their own cookie.

With only a $70,000 profit a reverse exchange will eat into your profits quite a bit.  

The taxes really eat into your take home money though, so after accounting for vacancy, common area utilities and repairs, you might make $32,000 a year (.04x800,000) (assuming you’re paying 24000 or 2000 a month equivalent towards renting your 1 unit apartment in your own house) BEFORE paying your mortgage (PI).

And I almost never give unsolicited advice as it's normally against the grain (but since you asked me to comment via DM)I'd take it out, eat the penalty, and use it to buy properties.   

Eat less meat and more veggies (ribeye's doesn't count!)

Because PM fees usually can eat up about 20~50% of net profit.Two of my own personal experiences:About 4~5 years ago, I had an opportunity to choose a similar 4-plex property from two states, one in Texas with property tax rate about 3%, another from a Mountain state with property tax rate less than 0.7%.

Walter on this topic of never paying the mortgage and there is another parallel topic called never eat a vacant month.