My 1031 proceeds are half equity and half debt and I can not fund the debt component with any additional personal funds.  

They designed a very nice postcard for me and i sampled a batch of about 1500 postcards to a list I provided to them.My results....7 responses (0.46%).The list was Out-of-State owners I pulled from the tax records, of which I got about a 13% response rate using yellow letters.I'm not going to say anything bad about them, I just don't think postcards work well for finding motivated sellers in my area.

New Home: I would need to dump some of my brokerage accounts for the downpayment(so some capital gains taxes would need to be paid to finance the downpayment on the new house) or if I sold our "current residence(2nd home)" I wouldn't need to.I understand the tax incentive of selling within 5 years of living there for 2 years, however, the cash flow seems larger then what I would get taking the money and investing in new RE in the future. 

@Jason WrayI don't think anything at a solid price point like that is "cash flowing right out of the gate," unless you are assuming an all-cash purchase and excluding debt service.  

The taxes on this property according to the listing is $15,000.

Does that include taxes and insurance? 

Property tax for each city and county is very different13.

I work with a handful of investor friendly lenders that don't require W2s or tax returns (lending is based on the property not the borrower) but am always exploring new avenues.

Not to mention I got to write off over $175k from my income taxes using a cost-segregation study.  

He o owes no debt on it.