To show sympathy as well as ensure an even longer term tenancy, it might make sense to eat the repair and show her you truly value her business.

As I understand, in a reverse exchange, the purchased properties are placed into some kind of legal entity (EAT?).

This is subjective, but I can see it when you're out to eat in LoHi or the Highlands or on Tennyson Street.

Is there anything I’m not thinking of that will eat up into my timeline.

The other complication is that as military personnel, we tend to be rank-conscious. 

@Ben Jespersen As @Drew Sygit points out above, $20K is not enough capital to make a direct real estate investment anywhere and especially in C and D class neighborhood where capital expenditures and potential tenant issues are likely to eat you alive. 

My favorite, they encouraged us to rip out our lawn and put in hardscaping to save water and be environmentally conscious.

I am conscious of that. and willing to change/adapt if necessary. 

We would eat the capital gains tax losses and fees from the sale, but we could hopefully match or beat the cash flow from CA property, diversify into several units, and have more room for appreciation.3.)

When I first started I was sleeping on an air mattress and eating ramen noodles and spending all my time learning about wholesaling.