Please respond as I need to know how to proceed tomorrow."

@Pete HarperYes, to avoid any taxes you’ll need to reinvest your net proceeds ($350k minus commissions and costs.)You can do a partial exchange but anything under $350k purchase will involve some taxes. 

Any suggestions on how to proceed? 

You can use the proceeds to buy a cashflowing rent property.

Since you are a first time investor proceed with caution.

Title company may be willing to hold back sellers proceeds in an amount equal to the lien x 3 for 30 days or so while the seller works on clearing the lien.

I've always been wary of anything with HOA fees, and if you do proceed, make sure you do due diligence and get the HOA meeting minutes and anything else you can find about maintenance and future cap ex needs at the strata.I've also noticed that you didn't include any appreciation of rent or property value and think that it is skewing your numbers slightly.What is your exit strategy?

Ignore the neighbors and proceed with your business plan.

I am on the fence whether to proceed because it appears there will be little equity'  Here are a few details:Duplex - side by side - both units 2 bedrooms, 2 full baths, 1000 sqft each. 

I've not had this issue but am thinking the right way to proceed would be to have a professional pet control company inspect the place before moving new tenants in.