You don't get the choice to take out non-taxable money in a 1031. 

This should still be a good deal for the buyer, since housing prices likely went up more than $30K since they signed the contract.I just think as a matter of integrity, trying to honor your contract and not leaving the buyer high and dry is the best choice for your business. 

You say it was their choice and their attorney screams unjust enrichment.

Going by Mike's theory it makes more sense to put a cap on the total amount that can be sheltered that it does to limit the choice investment options.

However, you are in a position to make smart moves toward building your wealth and financial security, but renting does nothing to advance those goals.  3.  

@Carl Millsap and @Scott M.Thank you so much for this advice-I offered her the option to terminate her lease at the start of the next month (due to the infestation/health concerns) and she declined, so I have that in writing that she chose to stay, given a choice.

Sounds like you have done the smart thing by cutting the fat off the bones and are concentrating on the bare essentials. 

QUESTION #4 Would it be a smart decision for the tax purposes of losing our personal home deductions in our taxes compared to the benefit of depreciation and others tax benefits with the LLC.

The way i figure it, these locations have good opportunities in terms of both cashflow and appreciation, are far enough from NYC to be smart investments, but close enough that I can travel there within a few hours by car if ever the need should arise.  

Your choice.