1031 exchange and trouble financing property to purchase

[Jason Gallimore]

We are selling one of our rental homes in order to purchase one in the same state we reside in to better manage the property. We are doing a 1031 exchange however we are having issues getting pre-qualified for a mortgage for a rental property that would equal the sell amount of the original property ($425k) due to changes in jobs and relocating etc. We made the decision to sell the original house when we ran into an issue with our current property manager and our tenants deciding to end their lease early. Long story short we decided instead of finding another Manager long distance and new renters we would rather go ahead and sell the house. I have a couple questions about this scenario: 1) Are there creative ways to finance another rental property or properties to fully utilize the 1031 tax benefit even if we are having problems qualifying for financing? 2) Would you recommend just doing a partial 1031 and just finance what we can qualify for then pay the taxes on the remaining balance? 3) Has anyone used a 1031 exchange with a brrrr method strategy? We are looking at a fixer upper house to finance via a hardmoney loan for purchase and construction and then refi to a long term rental property loan. Is this possible to begin with? I realize we will still have issues with finding lenders to refinance the property or properties. Thanks in advance.