Would fannie mae or freddie mac look at the vacancy % and is there a upper limit cannot go beyond?

The property is in a very desirable area with a strong market and limited multifamily. 

Spending so much money upfront limits what you can do going forward. 2) Best advice is that if you limit your thinking, you'll always have limited results.

There is VERY limited housing around here, so people who have housing vouchers can hardly find a place to move into and those with mental health are essentially screwed.

Not withstanding the frustration of working for someone else, you have a limited set of options - find a job or find a different source of income.

So your risk of foreclosure loss is less.A partial 1031 also might be a possibility depending on the numbers. 

@George Blower I've also read a bit about the IRA LLC I'm assuming I could keep contributing to the account but then are the contribution limits $5500 still?....

What I mean by this is that everyone is hell bent on not paying any taxes and instead investors find thousands and thousands of dollars of expenses on each property, which creates a loss on your returns.

If the market is going down the lender will speed up the process to mitigate loss (sometimes).

That leaves trying to limit losses using other means as suggested above.