I’m hesitant to pay such a large amount without seeing significant progress, especially given the prior problems.

I can’t make someone sell their property, some people will not be reduced to a dollar amount.

I.e. even though you need to submit draws for any rehab funds, you will get charged interest on the full amount each month.  

But even if you fall under the normal amount for debt coverage there is other loans like DSCR  which qualifies the propertys income and not your income.

@Tj Collins You can 1031 exchange in and out of any state, you can 1031 exchange in and out of any investment real estate - farm land, apartments, commercial, single family investments, new construction etc...The big things are timing on the 45 day window, 3 property rule and closing in a certain amount of time.

The rates are higher and points +++ plus prepay for a commercial loan or hard money loan.Loans closed in America are reported and stats are available as to who closed, how many, loan officer, dollar amount, loan type, location and more detail.

I've never had a deal where I did not have to infuse some amount of capital.

@Richard Benjamin Wilhite, @Bill B.makes some good points about loan terms and the strict identification rules for a 1031 exchange.I would add from a tax mitigation perspective that buying the largest property possible will give you the greatest amount of cost segregation possibility and at the lowest cost since it would be one study rather than several. 

Quote from @David Martoyan: You will always have a high amount of competition for real estate and real estate investors.

I recommend you pay him the final amount, but get a lien release, in advance, that says if you pay him this final amount, he will have been paid in full for his work and no further liens can accrue.