Risk adjusting your price is very reasonable.I don't see the advantage in waiting a few month.

This is an advantage for the 1031.

Should we take advantage of the current offer ASAP?

(Leaning towards the Greater Milwaukee Area)  I will most likely be using an FHA loan to take advantage of a low downpayment and hoping to find a 4plex.

Everyone has an advantage, just get ok being uncomfortable.

How exactly do investors use this to their advantage?

If you compare your mortgage payment (along with the tax advantages and equity gain over the longer term) to the cost of renting a comparable place, staying may be the best choice.That said, if you decide to move, I think selling now is better than 4-6 months from now.

I don't want to "take advantage" of something I don't necessarily "need" right now, but I also don't want to potentially screw myself over (later) if it turns out I DO really need to do so. 

If you have Other earned income from a job, an ira is another vehicle you can use that is simpler than a 401k to create and maintain and also allows you to save in a tax advantaged account.

Many are proceeding to take advantage of less competiton and low rates.