Could you help me understand what happens with a 1031 if a seller has low/no equity in the home? 

Hey Ron I'm an investor in Nashville, and with the market booming the way it is with the population increasing one thing a lot of investors say is the demand is high and the supply is low making this a sellers market.

- Inventory of homes on the market in an area (this may help determine if it is a buyer or a sellers market)

I certainly would not go with the comps that the wholesaler or seller provides.

On two properties, I was quoted current rates by the seller on electric, gas, and water bills.

I do know that at every closing I attend the seller has to sign a document that is reported to the feds stating that they are not a foreign investor. 

I have a multi under contract with the bank soon to expect the offer (based on seller's agent).

Sellers will often let their leases expire when planning to list the property for sale because they don't want the complications of trying to arrange a showing with tenants.

I recently contacted a seller (this is an off market deal) who is willing to sell his fourplex to me at an agreed price of 290k.

If there is equity, you could look at purchasing directly from the owner (who is likely a distressed seller), or purchasing the note from the hedge fund and pursuing DIL or FCL yourself.