You indicate that you have moved out of the house so you could rent it out for a period of time to prove that you had the intent to convert and hold for rental purposes and then later sell and qualify for the 1031 Exchange. 

He said $500,000 which I thought was pretty good but I told him sorry I can't do it. 2 months later he found me outside again and said look, I have to sell, and you own the building across the street, you have to buy the building.

Call your insurance ace guy first thing as he may check messages later and you’ll need them to file a claim sooner to get a jump on it.

Wondering if I should take both lots and try to sell the second one off or possibly build on it later?

I am going to double-down on my efforts to just get through the first purchase and then I'll start worrying more about finding the "perfect deal" later!

Later you use 50k+40k over 2 years on a 100k investment and get 9% CoC.

Well I caught her cheating red-handed even got it on video.. afterwards when I get back home she messages me talking about please forgive me I'm sorry that she still wants to make the marriage work but I just went by there two hours later and the guy still there so how is that trying to make it work

I’m aware it’s difficult selling the property with it in however I wouldn’t plan on selling it anytime soon and can do it later. 

Hey Will,As a PM in the area:-have a lawyer look over your lease-make sure EVERYTHING is in your lease (who replaces air filters, who replaces smoke detectors batteries, who cuts grass)-be thorough with background inspections-make sure tenant is aware (and is in lease) on when fines occur for late rent and how much they areThose are things that first come to mind.In can be expensive and time consuming to set it all up the first time and do it in a way that protects yourself and your investment.Let me know if I can help in any way!

What lenders will do however is accept previous tax history for future income once you own the property for a year or two so if you wanted to refinance later you could do that.