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.

Your accountant would be the one to decide that.If you do qualify you will be able to take the gain allocated for that exclusion tax free. 

Hello,I am an entrepreneur having issues qualifying for a conventional loan.

Their credit score is also slight less than the minimum credit score required to qualify so I can reject them based on those grounds. 

This means that the two of you bought/own a membership interest (partnership interest) in an entity and did not buy/own real estate, so it does not qualify for 1031 Exchange treatment.  

Who can/should I use as a qualified intermediary? 

There is a fairly new 20% pass through deduction you may qualify for that could help you, but not everyone qualifies.

@Erik Estrada right now Amex got me at a special rate of 9.99% I’m talking to my lender right now on qualifying to get a loan to buy the property

Deegan and @Arda Bircan There are technically 7 Tests for Material Participation (but 3 that are most common) -> the individual 500 hour mark, that the activity of the individual is substantially all, and that the individual participates more than 100 hours + no-one else spends more time than them.Litmus Test: Are your hours integral to the operationsThe hours that qualify must be substantially all hours and have a legitimate impact on the rental activities.Activities that generally count: showing the property for rent, taking tenant applications & screening tenants, preparing & negotiating leases, cleaning & preparing the units for rent, repairs, and improvements, managing the construction, purchasing supplies & materials, inspecting the property, responding to tenant complaints & inquiries, collecting & depositing rents, evicting tenants, writing & placing advertisements, and working on your websiteActivities that don't count: education & research, investor-type activities, and travel time..

I highly recommend a well-qualified REALTOR who works with investors and knows how to help you best.7.