That will help determine what areas/types of properties you can buy in those specific neighborhoods. 

The key things to determine are what are your short and long-term goals, and then, you can come up with a strategy that will achieve those goals!

I still need help determining how to decide which method to go with.  

The lender will look at the appraisal to determine fair market value and debt service coverage ratios to determine the qualify of the investment. 

I’m trying to determine if the upfront cost to renovate the unit (I plan on living in the current vacant side and renovating it) will be worth it so I can rent it out for more down the road.

A way to try to determine cash flow is the price to rent ratio.

(ii) lender determines that Buyer has satisfied all of lender's requirements related to Buyer's assets, income and credit history". 

There will be many variables to determine what you trying to achieve. 

Do I have the freedom to assign the 1031 exchange basis between properties as I determine?

I am trying to determine if I should use the 3 property identification sheet, identify the physical address of the building along with my approx ownership percentage of the building based on unit count percentage.