If I sell my current lot for say $140K, can I use the proceeds as a down payment for the house, with me paying cash for the remaining amount of the cost of that house (lets say its $250K)?

So I just go straight to court and file the compliant? 

None of my arguments will stand up in court or against the IRS.

If your QI doesn't get it ask them what the reinvestment requirements are - purchase at least as much as your net sale and use all of the proceeds in the replacement purchases - nothing in there about number of properties at all. 

Decide if you want to keep the tenants or if you want them out and then either write new leases or see if they are willing to move and worst case, start eviction proceedings.

Sounds like a hokey deal and there are a lot of 'what ifs' and risks that could result in attorneys, courts and a lot of legal costs.

For that that don't and collection efforts break down that is what the courts are for. 

Do I need to get the sheriff involved, or can I proceed with turning off the utilities effective that date? 

I'm trying to get together an Itemized Security Deposit Deduction Form and then maybe take them to small claims court for unpaid rent.

The interest expense is separately disclosed on each partner’s Schedule K-1, deductibility depends on how each partner uses the proceeds.