You may not 1031 into a REIT however there is a product similar to a TIC called a DST (Delaware Statutory Trust) that qualifies for 1031 treatment.  

., you should have no problem securing an 80% LTV on a personal residence and would likely be eligible insured mortgage products (up to 95 - 97% LTV) as others indicated.If you are trying to purchase before you move, does your wife have family who would be able/willing to act as a guarantor on a mortgage?

I've spoken with various people on the matter and the price can range anywhere from $125 - $215 per square foot which means complete with demolishing to finished product. 

I think I will be more productive by just focusing on one thing at a time until I get more experience.

Lizzie is right - check out local banks in the area around Denver and the Greenwood Village areas and tell them you are hoping to use the Home Possible 5% down conventional product!

Keep in mind most of the markets in the USA you are getting lower end product.

Make sure the property is actually zoned for multi-family and not the product of a past owner turning a single family unit into a multi-family unit.

Kindly take a look a the diagram labeled 70 Safe Haven Residential Rental Markets.http://www.realtytrac.com/news/real-estate-investi...Additionally, with regard to your concern about the 2% rule, this is not sustainable in various parts of the country.

For a bank that does portfolio loans, Towne Bank has a great product.

I'd be curious as to what the city expected and got for its 90K and are those obligations transferred to a new owner, as it may come to bite you later.As others have stated there is a difference between old houses labeled "historic" and as I've discovered different jurisdictions have different understandings of what historic means and how much it is enforced, even sometimes in the same city.I currently own 3 old homes (1874, 1876, 1920something), one supposedly in an historic district.