But yes, a tax deed auction is scheduled purely to pay off the Certificate holders.

Do I need to move out for a year, and use it as pure investment property then sell it after a year, to claim 1031?

When you’re older and ready to “retire”, maybe then it makes more sense to cash in on all that equity and buy purely for cash flow.

My understanding is that condos do not appreciate like SFHs would, so would that investment be purely for cash flow, and pulling equity out down the line, or should I wait until I have enough cash to invest 15-20% in a SFH?

If you are writing checks out of your personal bank account to cover a property that isn't covering itself... trust me you will quickly take a different view on a pure equity play.  

.#4 - If you wanted to purchase a pure investment property to rent out (not living in) will require a minimum 15% down payment with Conventional Financing however most lenders are going to set their requirements at 20-25%.

., gives your more insight into the quality of tenants, whom to not renew a lease with, etc.) and 2) if you decide to make this a purely investment property, lenders will require 20% down so you’d be best off finding something for half the price you were originally seeking. 

I know this is a broad question but me and my brother have agreed to use this money purely for investing and to help us in our goal with financial freedom and to set our mother up for success.

My personal preference is investing in real estate and there is a high probability that many in this forum will say the same purely because this is a real estate investor focused forum. 

I have a clear vision of who I want  to become within the next couple of years, I have pure motives and will always honors those who helped me rise.