Any tips on how to do this as far as  federal tax returns, what I can deduct, what I have to claim as income?

@Jamal Hamed, here's a blog we wrote for BP on cost for a 1031 - https://www.biggerpockets.com/blog/how-much-does-a-1031-exchange-cost.Since 1031 is a federal statute it is performed the same in all 50 states. 

Looked on the county assessor site at it shows that federal national mortgage association owns it also says attn ditech financial.

Most recently I got my buyers $4500 credit for about $3500 in repairs needed (hidden termite damage, filthy AC ducts and Coil, and we threw in the Federal Pacific panel we already noticed since most Realtors wouldn't notice that).  

If you have equity in your current property instead of refi call pentagon federal and apply for a non owner occupied heloc.

I recommend Arkansas Federal Credit Union.

He also owes federal and tax bills of about 50k.

Below are links to recent Indianapolis investigations  https://www.theindianalawyer.com/articles/49245-justices-agree-to-hear-rainbow-realty-rent-to-own-disputehttps://cbs4indy.com/2018/10/03/cbs4-problem-solvers-investigates-rise-in-rent-to-own-deals-across-indianapolis/https://www.indystar.com/story/money/2017/06/26/rent-to-own-contracts-challenged-federal-court/385195001/https://www.in.gov/icrc/files/Amy%20Nelson--ICRC%20Rent%20to%20Own%206-18-19.pdf

@Trevor Bragg when we are talking about buying a PRIMARY home then some very specific federal compliance laws come into place which limit what you can do comparatively to an investment property. 

Additional protections apply to federally-assisted housing.”Generally, you can’t simply deny someone based on things like Family status or any of the other protected classes as outlined by the fair housing act.Those classes include:ColorDisabilityFamilial Status (i.e., having children under 18 in a household, including pregnant women)National OriginRaceReligionSexAdditionally, some states are starting to set regulations in terms of the application process, ie. banning the charge of an application, setting mandates in terms of accepting the first qualified applicant to apply, etc.So it does vary state by state in the sense that some states may have additional protected classes and additional procedures by which a landlord has to follow.