For estate planning purposes, we want to change the title to a revocable trust where my husband and I are the trustees. will this have a negative tax implication for 1031 purposes if we want to sell these and purchase properties prior to my husband's passing?

Those that respond “$0” or something ridiculous, you can request income documentation from them to justify.Don’t be afraid to share with them how much your property taxes & Insurance increased and that YOU cannot afford to absorb them.ALWAYS get an increase or something of value annually or tenants will start thinking they should never have an increase, making future increases that much more difficult to negotiate.

There is no inheritance tax given the value of the estate.

My question is do I need to use all of the equity towards the down payment of the property, to avoid capital gains tax? 

The date of the foreclosure is prior to my contracted purchase date.

There was an opportunity to help a fellow investor who had his family growing and needed to dispose of the property to get rid of problematic tenant issues, rising taxes, and invest in other opportunities closer to home.

Never let the tax tail wag the dog.

Also make sure your tax basis is reduced as part of the sale since your land is being reduced. 

You should look at any limitations on gift taxes though, and she may actually want to structure it around any of this.

if you can manage to live in it and rehab it over time, then if you live there 2 of the last 5 years prior to selling it the gains are tax free up to a certain amount.