We also asked the seller for a price reduction to make the numbers work but the seller declined so we backed out of the deal and had your earnest money returned to you.

This is a very legitimate deal and quick money for the gap lender.

When I listed concerns of flagrant lease violations, gone unchecked (derelict vehicles, unregistered large breed dogs who are not picked up after, garbage scattered out in the yard, piles of debris; old tires, tv, kitchen sink, broken wheel barrow, all sitting out in plain sight for a month or more), wash machine drain hose running out a window and draining into the lawn.

There are so many ways to make money. 

Or money back if not working or if I find incorrect data?

I have looked into some of the rules and it appears that I could not defer this money to a 1031 because at one time this was my primary residence?  

You will still be much lower than  new build.And faster too, and as we all know  - 'time is money'....

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Tenant keeps a bank account and credit card on file with Obligo, and they authorize Obligo to withdraw money up to a certain dollar amount.

If the surrounding area has a lot of tear down and rebuild or there’s no inexpensive way to renovate to make it more functional, likely not worth sinking much more money into it if most future buyers will just prefer to tear it down.