Buyers who don't understand 1031 exchanges can still raise red flags. 

I'm sure there are a lot more technicalities to it, but that's my general understanding. 

BP has a few podcasts about it, with this being the most recent: https://www.biggerpockets.com/renewsblog/biggerpockets-podcast-252-house-hacking-your-deal-life-hacking-craig-curelop/Unable to use it now, but from what I understand an FHA loan can be used up to a 4-plex as long as you intend to live in it.

I understand it’s a heavy vacation time of year, so after not hearing back right away, I didn’t think anything of it.

As I understand it, flips and lease/options are strategies mostly for smaller properties than the one you describe.

@Matthew CottrillI understand with the desire to bank locally but why must they hold the loan?    

Banks understand that all real estate is local. 

Unverifiable income will not be considered.Applicants must receive positive references from all previous landlords for the previous 5 years.Applicant may not have any evictions or unpaid judgments from previous landlords.Applicant must exhibit a responsible financial life.

My understanding is that all reviews stay with the owners profile.  

I understand the basics up until after the refinance.