@Ryan Cleary,In a prior life before 1031 exchanges, I worked with a national firm that worked to evict thousands of tenants from underperforming properties across the country. 

He has been a dentist for over 10 years.  18 months prior he purchased a dental practice from a retiring colleague. 

The building has been extensively renovated by the prior owners in 2022 including new heat/ac, appliances, flooring, kitchens/bathrooms, roof.

Oftentimes, distressed properties are going to be a lot of work for an agent if there are lots of inspections and quotes to coordinate so it is smart to talk about this with your agent prior to finding deals.

@Joshua Michael HaumanI have mentioned this in prior posts.

However, the issue I have is that I only have 1 year of solid income from the business, the year prior to that is inadequate, and I know most mortgage companies require 2 years of income to qualify.

However, two things that are a big unknown and was wondering if this would automatically disqualify me... 1) I had a foreclosure on a condo that finalized in Feb 2019, so more than 5 years ago. 2) I work for myself and been doing this officially for 1 year only (prior to that I had a high W2 job).

The other thing to think about is that if you sell your primary while you have still iived in it for 2 out of the 5 years prior to selling it you will get the first $500K of profit tax free.With a little hesitation, your plan is an awesome one that can be even better.

You're not risking your prior 1031 exchange by simply changing the strategy you use. 

Written Buyer Broker Agreements: Agents working with buyers will need signed agreements prior to home showings, which should clearly define the services and compensation.