There is a cost to doing an 1031, the Qualified Intemediate could charge say from say $500 to $2,000 or more. 

i have a couple quick questions about using rental income to qualify.This is my first (possible) purchase and basically the home price is outside of my range to qualify on my own.

Your strategy may work attracting good tenants, but be careful disregarding applications or denying the property to qualify individuals that are protected class.

The total cost of project is more than we can qualify for based on personal income, although our W2 income and credit score all work in our favor.

What happens if one of you decides to buy a personal home and need the credit to qualify for a new loan so needs to sell this one to make it happen, but the other partner not ready to sell yet, or doesn't want the capital gains. 

I highly recommend a well-qualified REALTOR that works with investors and knows how to best help you.6.

While you are likely to get some good ideas in general from BP, you’ll find that for specific QUALIFIED advice you should probably spend the $500 for a few hours consultation with someone holding the CRE designation. 

Its not that the operator does not qualify its just the banks by and large do not have that product.. what a lot of bigger players do is use their securities as collateral and pull loans through that avenue and those can be very good rates..

If they don't pay it in full, then you continue to market it and offer it to the next qualified applicant.

Most part of the houses that will qualify for the loan should be in livable conditions, and it looks like they don't need much work, so it might not be able to do BRRR.