Verify with a 1031 intermediary and your cpa. 

Crunching those initial numbers made perfect sense and I was off!

I also include 3% of the purchase price as part of my initial costs to fund a CapEx account.  

Trust bu verify my friend.

Our initial financing fell through and we had to scramble to secure backup financing.

I don't know what his initial investment is but he thinks it should be more than enough to cover it.  

It puts you in a position of accepting a lesser overall return per project, initially, as you will be paying a lender and a PM (but potentially a greater return when factored as an ROI, esp. when annualized).

I'm not looking at closing costs or anything other initial costs in that figure either. 

I wouldn’t give them the keys until you’ve received all rent/deposits, you’ve received proof of renters insurance, and you’ve verified they put the utilities in their names.

If the entire purchase is only equal to your sale then it all must be used for investment initially.