Find Brandon's videos on YouTube for the "four square" method of analyzing homes and practice.

I just look at it like a 12-15% down payment, which I can stomach.

Not plus 40k.  40k down payment. 

I like the one that requires payments to be deposited in an escrow account:New York state law requires that consumers receive a written contract for home-improvement work that exceeds $500.

I'm basically looking for input in the following:Option 1: Buy a couple of properties and split the money from the 1031 exchange for the down payments.

I have used several methods that have been quite fruitful over many years. 

Quote from @Lionel Quiambao:  ... and maybe throw in the option for the tenant for more speed at an increased rent to cover the additional payment. 

S8 will include utilities in the rent payments to the landlord, BUT ONLY UP TO A CERTAIN AMOUNT.

The only things that matter are credit, down payment, reserves, and DSCR ratio! 

This is money that was used for the kitchen and down payments on our last two properties.