If it's Deed of Trust can move very quickly subject to state law.

We went above and beyond for them before them moved out fixing things that I dont believe were normal maintenance issues.  

From my understanding - paint last upto over 7 years if there is no lead issues.

Has anyone else experienced issues when purchasing properties after foreclosure? 

If after 6 months you find that you don’t mind collecting rent and dealing with the occasional maintenance issue then it might be time to start thinking about how to go about buying your next property.

The subject is way too broad… 50 states’ different laws are implicated. 

The main issue that I have is that the tenant has 2 more years left on the lease and in order for me to fix all the mess in the basement I would have to remove tenant. all plumbing, electrical and structural is potentially dangerous.How do I manage repairs if tenant doesn't want to move?

Of course, there is an issue of where do you live for that period of time to establish that you 1031'ed into another investment property...I agree with @Michael Plaks, I don't know how you figured that savings...As for "...harder to sell to potential buyers," the 1031 transaction is mostly transparent to them. 

@Srini Murthy hopefully it is a non-issue if you pursue this property!

Does anybody know of a good law firm in Ocala area to file and represent for a small claims court case?