I am adding a bit more context -- The $1k in expenses is coming from 10% of the total gross income ($11k) across all 6 units (3% vacancy + 3% repairs/maintenance + 3% cap ex + 1% misc).

FHA loans are really only best in lower credit and lower down payment situation. if you have the ability to do 5-10% I would do it. if you don't need money for repairs , you could do on the higher end 10%+ but if you do need money for repairs 5% could be good. some lenders will do recasts on loans and you cannot do recasts with FHA.

If that is the case it would require a 1031 which is just another layer to the process but ultimately not really that complicated.Without knowing how much repair work would be needed it's difficult to give specific advice.

*Renovation Costs – Includes labor, materials, permits, and unexpected repairs*Holding Costs — Utilities, property taxes, and financing costs during the renovation time.

Looking over your numbers I'm surprised a couple of them are so low - mortgage expenses, repairs and capital expenses.

This is because RE prices reflect a lot of parameters including anticipated rent growth. 

My business could then pay the utilities, property taxes, mortgage interest, insurance policy, and home repairs. 

In simple terms, it says you shouldn’t pay more than 70% of the property’s After Repair Value (ARV) minus the cost of repairs.

Zero-percent business credit lines can be a great tool to fund renovations, repairs, and even serve as gap or bridge funding when working on a BRRRR deal.

Feel free to reach out with any questions about repairs, construction, mechanics, etc, as I am well versed in those fields.