i intended to rehab and move in, then refi and pull out more cash than I put in. that is what I meant by flip, I have heard another use this term. that is also the intention on the one I bought with the proceeds. if i get another letter from an investor wanting to buy this one, I will 1031 again, try to move in and refi my money out. 

Sale proceeds go to the LLC at settlement, proceeds are then cash deposits and are still in Ned's capital account.

How do you proceed with making future property purchases if you don't have cash in hand??

Proceeds to be used for soft costs for hotel development - plans, permits, entitlements.

My goal would be to contribute funds here and purchase a rental property, and give those proceeds to my family member when he's in college.  

Our question that we get stuck on is, should we sell our cabin and take advantage of our $100k equity and use those funds to purchase two additional townhomes (applying $50k down payment for each), or use the proceeds and put all $100k on one property?  

not a bad idea, josh, but there are other options. i believe the proceeds from refinancing are non taxable. i would refinance it for the largest amount i can get out of it, and then sell it. real estate investors such as donald trump and ross perot do it all the time. this gives you the cash you need upfront for the next deal, and no taxes. of course then you could rent it out and have the tenant make your payments so you have no out of pocket costs from then on, and simply move on to the next deal.

I am considering purchasing, but as I have not done any deals yet I would like the opinions of more experienced investors before proceeding 

Went to see a few properties, but met 1 really motivated seller who wanted to take the proceeds from the sale and buy a better house.

I will proceed cautiously.