If your property was worth $250k, you have would generally have to spend $250k or part of the exchange will be taxable. 

many states have downpayment assistance programs like home is possible check with your lender 

Your address might be at this 4-plex, but the government can't dictate where you spend your time. 

However once you make enough money where there is a surplus, you may spend and go out as you please.”

They will spend as much time as you need working through just about anything and they are very pleasant to deal with - a very rare thing these days. 

I should add that I am in California, but if you follow the rules and read the contracts (and have an assist from a legal team), its not that bad.

Don't spend all your ammo (7%) on one shot, because if a costly CapEx expense comes up or something unforeseen happens, you don't want to have to start using costly credit cards for operating expenses :)Good luck!

I want to start investing in rental properties. I have $40k cash and was wondering what's the best way to invest this money. Any help or ideas would be appreciated 

It is absolutely in your better interest to negotiate one of these, even if you end up spending more than what your eviction cost would be.

Shane, There are a few things I saw on the report that I think you should ask for seller assist so you can fix it yourself (Never ask seller to fix anything, they are trying to keep as much profit as possible, so they are inclined to do half-*** jobs) or ask for 2-3K reduction in price.