I really want to make this happen, but I won't be qualified without that income.

Before you start asking any questions you need to get an idea of what you qualify for in terms of financing.

Specifically, my question is whether you can acquire a short-term rental, then immediately turn around and use the income from it to qualify to purchase another property.

@Mary Eubanks   Yes, you can get a second mortgage up to 95% assuming the borrower qualifies of course. 

Best value at selling is to remove the JADU due to poor auction the result of mostly needing a house hacker   In addition, if you already have a regularSDU (which would be primary reason to add JADU over an ADU), the property by rule does not qualify for conventional financing.  

If you qualify, and the numbers work, I don't think there's a better option out there! 

If I had the 20% down, qualifying for the loan is easy peasy. 

And these tenants will never be able to afford or qualify to buy a home of their own.

The cash out does depend on a few things like neighborhood appreciation with strong sales or renovate and refinance on the ARV (After renovation value).When you buy a 2-4 unit you get to use the rents of the other doors as income to help you qualify.

Can it still qualify for 1031 because the rule is u have to live in it or rent it for 2 out of 5yrsSecond, if I buy a property, renovate it and sell within 3/4 months, can it qualify for 1031 because I heard u have to hold it for 1 yr.Is coop sale and exchange with purchase of single family home "like kind" of exchange?