We have a good relationship with our bank and they will help us conform to the 1031 exchange rules. 

There is a low down payment portfolio option that I am aware of if the property is above conforming limits.

Conversely, you can certainly use a HELOC for buy & hold property, but there are some gotchas (assuming conforming loans for your refi):Cash-Out Refi before 6mo'sIf you refi before 6 mo's, you can only cash-out up to your original purchase price, which parks a fair bit of equity in the property, such as all your rehab costs.With a HELOC, you might end up with an open balance after the refi, such as if you sourced both purchase & rehab from your HELOC.With cash, you'll walk away with less cash than you invested but will have no open balances to pay.A hybrid approach might be to use HELOC for purchase and cash for rehab.Cash-Out Refi after waiting 6 mo's, aka a 'seasoned refi'Presuming your BRRRR numbers work out as intended, you should be able to recover your investment and still have equity required by the refi lender.With a HELOC, you'll carry at least 6 mo's of interest, but you shouldn't have an open balance after the refi.With cash, you'll get back your investment and won't have the carrying costs you had w/the HELOC. 

gentrification/ˌjentrəfəˈkāSH(ə)n/Learn to pronounce nounthe process of renovating and improving a house or district so that it conforms to middle-class taste."

These products let you cash flow really well and generally are less headaches than a conforming loan.

Hi @Jared Kotler I was shopping around a non-conforming loan to a bunch of local lenders about a month ago. 

Most likely though, from my experience, it is not enough.5) Make sure that the duplex is legally zoned, there are a lot of non-conforming multi-families in Philly and that presents a problem for legally renting it, for financing, and for resale.Although there may be other circumstances that make this a good deal, given everything you've presented, and the potential tenant displacement, I would say this is not a deal that's worth pursuing.

But it's important not to get your heart set on something based on a Discover card statement or Credit Karma if you are anywhere in that mid-range from about 580 to 740 that about ~80% of consumers are in.740+ is the best rates for conventional conforming. 760+ is the best for PMI.

Delayed Financing can be started as soon as you are ready to get an appraiser into the house to appraise based on the updates/renovations done.Google - Fannie Mae Delayed FinancingYou will have better luck with Mortgage Brokerages rather than Banks if you are going for a conforming Fannie Mae conventional 30-yr/15-yr mortgage - both with rates and investor-friendly service.

Is it in conformance with zoning regulations?