A few thoughts:1) I echo @Simon Ashbaugh recommendations. 2) I'd recommend talking with investment focused real estate agents and finding one that understands the area your interested in.  3) Get a investment analysis spreadsheet or use the Bigger Pockets Calculators to run numbers on as many properties as you can in your area (try to run calculations on 3-5 buildings per week) to figure out what's a good deal.

Also when purchasing properties try to stay from the Historic district, each city here in Hampton Roads does have them, and the Historic Preservation Commission can be a pain to work with.  

I can probably find someone who can come in and stretch the carpet working around her furniture, so I can try to go that route, but this is the first time I've ever received a letter of this nature and I'm not sure how to respond or whether I need to consult with a lawyer first.

Good luck to youThere is a lot of mf properties in my local area that have been just sitting on the market due to poor pricing, I am going to try and reach out to them individually and see if we can work something out. thank you for your response!!

At this point,  I'd rather just rent it and try selling in a few years, but we can't get any interest as a rental either.

This is a common situation for a lot of my agent contacts with owners trying to sell in that area.There can be returns, but you need to purchase the right property and have the right plan. 

Have any of you tried using automation in your rental business? 

So I really feel like it could appraise for $625k after closing the first leg and trying to do a refi.

HI Josh, Condos are nice and easy to manage, however this could limit you from expanding your portfolio in real estate, if you are trying to grow and have multiple rentals in the near future.

Otherwise, you're looking at trying to buy the best cash-flowing property with your 1031 exchange so that you can use the monthly income stream to pay off your total debt a little bit faster.