Anyway to use 1031 or another avenue to avoid/minimize tax liability?

Ultimately, I would communicate with the tenant if you have a good relationship with them to minimize any confusion around when they need to vacate.

He found a way to minimize the penalty.

Living in one unit and renting out the other three can be a great way to really minimize your mortgage per month.

Assuming your current property has the ability to stay rented then the risk is minimal.

There're few services available online that you can sell with minimal agent involvement/fees, there're few companies working like this.

Your monthly cashflow when you move out will be minimal, but your cash-on-cash return will be decent because you only had to put 5% down. 

You do have a sequence of returns risk with this strategy should the market be down when you have to sell one (ideally it is minimal). 

Minimal updates.

Hi BPers,I'm converting my current property into a rental and want to maximize my write offs/depreciation and minimize my capital gains when it comes to sell.My house was purchased in 2012 for $265k.