Not sure if there is way to 1031 exchange the funds from the old single family home rental if I do sell it into the townhouse and essentially buy it from myself into an LLC. 

The single-family and multi-family homes are at a lower price point than most other neighborhoods in the city while still being a safe and nice place to live.Pleasant Ridge and surrounding zip codesHighly desirable area to live in for all age groups with plenty of bars/restaurants nearby.

the rest of the 44 pages just itemize the crimes, he made fraudulent documents/forgeries etc, to get 2000 investors to put in about 658 million over 4-5 yrs, WOW, i wonder how many other similar PONZIs have been running all around the country, particularly in the growthier multi-family syndications

A lot of companies, entrepreneurs, people with strong family values.

Me and my family have a good size portfolio of residential and commercial properties in westchester county ny and have been long term holders for over 20 years. 

You could room hack a small single-family with friends and make it work.

Can you qualify full documentation for a construction loan (IRS taxes net for a big loan plus what your housing is today unless you move in with family)?

I own a 3 Family investment property in a trendy neighborhood in Queens NY. 

This will cause some downward pressure on single family rentals.

You can do that by going in on deals with other investors, either friends and family or through an investment club.