As a side note just take care of your warrants, pay your tickets, appear in court, do what you gotta do.

I'm currently working with an attorney now and consulting with someone in the clerk of court office trying to get the next steps going.

We took a loan out against one of our rental properties and used the proceeds to both buy another, and fix up another.

That being said a 501c3 is a corporation so that’s what you would use as your entity structure if you want to proceed that way.

Then, the proceeds flow to the holding LLC then to you.

Did you invest any funds in the replacement property over and above the proceeds from the relinquished property?

Then you can either buy more investment properties with the proceeds or go do it again in a bigger house. :-) You must have lived in the home for a minimum of two out of the last five years immediately preceding the date of the sale. 

Looking for some feedback about the best way to proceed or if it matters at all.

The property is 87 miles from my current home, and are now being told by my broker that it has to have a 100 mile minimum distance limit to proceed using a FHA 3.5% down payment program.

All we can really do is repair it ourselves and bring him to court to try and recoup the costs, we do not have this kind of money on hand currently.