So, yes, technically your wife can count towards the occupation requirement, but it's geared more for military members PCS'ing or setting up a household in a new location before the veteran can occupy the home, or a member on tour in one of those unaccompanied "hardship" locations where families aren't welcome, or on deployment, not for a couple who live in the same major metropolitan area.  

On the next set of boxes for question 9a I am supposed to declare the Type of Entity.  

So basically is there a set rule that says if a new tenant moves in under a new lease that I cannot raise rent to market, in this case it would be almost double. thanks for taking the time to chime in anyway. all input is appreciated  

A 1031 will start with the sale of that property so first you need to get with the commercial agent and set a game plan of either sell or lease extend, new lease and tenant or whatever.

The exact threshold is a little grey but generally once the renovation entails 60-70%+  it would be deemed "significant".On a side note:  When posting a new thread to BP, post it once in the most appropriate forum and please do not spam the same message across several forums.  

If you are looking strictly cash flow and have a solid team set up in that location then it could be a great strategy!

A meeting was set up for me to sign docs, and briefly read docs as I was signing, the wire instructions were included.Just prior to wiring funds , there was a warning about wire fraud , and I noticed that no letter head was included with the wiring instructions.

Additionally, @Parker Cox, Kevin Fox, and I are working on setting up another meetup soon, which we will post about on BiggerPockets when we have the details ironed out. 

I am likely interested in using an FHA loan at that time to purchase a fourplex, but am definitely not set on that, as I understand much can change in two years in the market.Thanks!

Pay off the balloon and then offer him owner financing on agreeable terms on the $38,000 plus any fees you might incur setting up a new contract.