Is there any way I can still use the 1031 exchange rules or do I just pay my taxes and buy a new place?

You'll learn the same stuff, if not more, applying that money to a down payment on a property, and then you'll still have the property at the end, with the mentor program you'd have nothing.Anyway, I can recommend a couple of real estate specializing attorneys in Rhode Island I have used for multiple transactions, and will PM you their names/info.

@Tim FosterYou can apply for a HELOC and you won't be charged interest on funds until it is withdrawn from the HELOC.Normally when you speak with a lender - he will ask you where the funds will come from.

Often times, you can just takeover such an account and make it your own.With any non-spousal IRA (self-directed or otherwise), the IRS rules stipulate that a certain amount must be distributed from the IRA to you each year. 

Also if you applied and were denied it would probably be a year before you tried again at which point the inquiry comes off your report

Establish clear rules and boundaries, and don't deviate from them, no matter what. 4.

I think even if you were getting $650 per unit  you're still well under the 2% rule.

You should absolutely have your own leases in force and then you can set the rules to what you want (i.e. they pay their own water bill going forward). 

Section 1031 does not apply to exchanges of: Inventory or stock in tradeStocks, bonds, or notesOther securities or debtPartnership interestsCertificates of trusthttps://www.irs.gov/newsroom/like-kind-exchanges-under-irc-code-section-1031

I may have broken the cardinal rule by purchasing a multifamily mixed use commercial/residential property in Michigan that has shared utilities AND electric heat.