So even though you aren't seeing cash flow right away, it's still a net benefit to you because it reduces your expenses.I hope this one works out for you!

We have had a number of tenants that were fantastic but had dings against them because of nothing more than medical collections.

If they exceed 50k, the amount that can be expended is reduced dollar for dollar.

Even if you end up not using or agreeing with it, it is a good way to educate yourself.Yes - the fact that tenants pay their own electrical / gas / heating will reduce your expenses by a few points but you are expecting to run this property with only $25,000 in total expenses (less then 25%!). 

What are the realistic expectations of getting the medical and car debt reduced.  2 Would it be possible for myself to negotiate with the creditors on their behalf.Thank you for your input.

I understand that if I sold the house within first three years of moving out, I would not have to pay property gain taxes over 250K as a single person.However, I also heard from an agent something into this effect that if I don't sell the house within the three years and even if I moved back in after three years and stayed for more than three years the property gains cap maybe reduced to a smaller amount than 250K.

I saw this last time too where all these flips shows came out, seminars from educators were rampant, news stories were once again touting real estate as in vogue and a juggernaut that can't be stopped.I know agents right now buying cars,big houses, trips out the yang thinking (this is awesome).I am trying to make smart investments today and hold a certain liquidity position to take advantage of discounted assets in the future.There is talk that Trump's plan for reducing corporate taxes and road improvements might extend the cycle out 2 to 3 more years but nobody knows for sure.

They may double security deposit requirements (as allowed by law) for everyone, reducing if no animals are involved.  

I want to buy a property that I can live in and either create a second unit, rent out the bedrooms, only to reduce my own income going into the property/mortgage. 

Partial 1031 Exchange transactions are perfectly okay and are done for many strategic reasons, including, using of loss carry forwards, creating a cash position, reducing outstanding debt obligations, and taking some money off the table for any variety of reasons.