The promissory note is secured against the property as collateral by way of mortgage recorded against the deed. 

He asked me for information about me (but not my social security number) and has already "approved the loan".

We are now talking to the mortgage lender (the same lender for the three replacement properties) about securing a significant line of credit using the apartments as collateral so we can do some other short terms deals with "cash purchases" then refi, etc.Are there any considerations or gotchas/ endangerment with this idea the regarding the original 1031 exchange?

You Do have total control over what you offer. 

However, I've had horrible experiences with both American Home Shield and Total Protect Home Warranty. 

However you are looking at about $20,000.00 in total cost so you will have to determine if it would prove worth it to you.

Do a little research and see if it's totally necessary for the cost of a commercial loan.We always counsel our borrowers to get all the  conventional financing they can get and then once they've hit their 10 loans, go commercial. 

I can sell it or rent it easily.Is it better to sell it or rent it.The house appreciated about 70k in 4 years and about 30k principal reduction which a total of 100k..If I rent it I can make $700 monthly above mortgage.I purchased another primary residence and am moving in two weeks.I want to make the best decision.Thank you for your input.

She wants to keep it, so I agreed to take $30k on a buyout if she can secure funding, if not we sell and split whatever is left 50/50.

The deposit should be non-refundable if she decides not to rent your house, and convert to the Security Deposit if she does rent your house.