I (personally) and my clients use the 1031 process regularly and I definitely make it my business to understand the ins and outs, but I am a turnkey provider (and BP addict, clearly), not a 1031 pro ;) If you are considering selling soon, remember that a 1031 requires that you have a QI on your team before you get started, and there are plenty of timelines and rules to adhere to.

With that being said, I understand that nothing comes easily and this is generally a business in which you get out what you put in.

It was my understanding that I will get a 250k deduction but that was essentially it other than investments I've made to my current home.

Madeline,You're on the right track, you just need to reorganize some of your numbers to better understand the scenario.First, the 50% rule is a general rule to help quickly analyze the financials on a property, although it seems to be very accurate on average much of the time. 

@Frank SanchezI have a sneaky feeling that you are not working with a rockstar loan officer who understands investors. 

This is the part i'm not understanding.  

I don't understand why there is a delay in signing the lease.

I have to accept it is more than what I estimated.I actually estimated at 4-5%.I would like to understand the closing costs mentioned by the lender so that I have a better understanding before closing.Loan Costs --- $4342.A.Origination Charges - $15900.655% of Loan Amount (Points) - $550 ---> Is buying this point compulsory?

You have to understand the 1% rule is a general rule of thumb and not applicable in every situation.

What I've learned is that employees don't understand time and money, and they don't see the future.