In regards to redemption periods.

The period of time it was a rental will mean capital gains and perhaps some depreciation recapture.If you sell the town house and buy three properties you could move into one of the 3 properties you purchase.

Then long term capital gains on the rest of the gain.Now, if you're thinking of buying in Boulder, then, yes, you're going to have losses.

Our kids are 9 and 5, so we're towards the end of the period where you're really glued to the house as a stay-at-home parent.

some good related reading:http://www.biggerpockets.com/forums/52/topics/73627-setting-rent-price-for-section-8http://www.biggerpockets.com/forums/52/topics/62388-section-8-basicsThe adjustment to market rent is what would concern me, since the Housing Authority will make these adjustments periodically, and that could lead to a reduction in your expected rents.

By the end of the 18 month growing period I should be at a point where I can pull off enough to maintain the lifestyle i currently have with the day job.

Need council - have a feeling this house will sell very fast in the First Look period, as have others we've had our sights set on.

You should not have to do this in any sort of advanced time period, your divorce decree is your evidence for all of that.

I think I'll have 10-15k for the basement level, since the rest of the house is in such good shape.

There has been no 30 year period in the history of the United States where the average price of a home was lower after 30 years.