You could do a 1031 Exchange where you sell one investment and then use the proceeds to purchase another investment. 1031 Exchange funds will not be taxed because it remains an investment.

This state has plenty of Legal aid representatives who sit right at the court house just waiting for tenants to come through the door looking for assistance. 

Of course court is too late to fight this if you're dead. 

Or do I use that same tactic to pay down the mortgage on the new house to the point where I can sell the old house and use those proceeds to pay off the new one?

Either way you'll likely need to put in a CC# before proceeding)3) Go to "Business Organizations', then under "Web Filings" choose "Domestic Limited Liability Company (LLC)" (or different, if applicable)4) Filing type -> Certificate of Formation (should be the only one)5) Fill out your info.The cost should be $300.

So yes, most people invest more in homes, where they can enjoy the proceeds of the investment here and now, than stocks or other re.

From the court.

Where do we get best lease that will hold up in court and protect our interests.

Does he have excessive landlord/tenant court history?

If he refuses to be reasonable, you can just pay him what you think it's worth and put the onus on him to take you to court and prove his case in front of a judge.