Should I look for specific types of properties or areas?

Another way is to switch your product from 30 year fixed to a 5/1 ARM so now you're taking program or financial risk to arrive at a lower rate such that you can pass this FHA SS rule (5/1 ARM FHA has a lower rate by up to .50% than the 30 year product typically).

@Li Li, Since the 1031 exchange will allow you to move into any type of real estate anywhere in the country. 

And it most likely will.There are some loan products available for low downpayment if you are willing to do a live and flip situation. 

If anyone has advice on how to put pressure on management or navigate this type of situation, we'd appreciate it. 

Cash flowing in the type of market we have is extremely difficult, especially with such a small down payment. 

I agree with @Jonathan Greene in terms of having a specific buy box - size, condition, and type of properties you wish to focus on.

If FNMA, FNMA allows transfer of deed to LLC if mortgage originated after June 1, 2016 and original borrower owns a majority interest in the LLC and any 12 months of owner-occupancy is first met:https://servicing-guide.fanniemae.com/THE-SERVICING-GUIDE/Part-D-Providing-Solutions-to-a-Borrower/Subpart-D1-Assisting-the-Borrower-with-Property-Related/Chapter-D1-4-Transfers-of-Ownership/Section-D1-4-1-Information-Relating-to-Transfers-of-Owner/D1-4-1-02-Allowable-Exemptions-Due-to-the-Type-of-Transfer/1041300841/D1-4-1-02-Allowable-Exemptions-Due-to-the-Type-of-Transfer-09-09-2020.htm

What made you interested in investing in this type of deal?

There are two types of appreciation to consider:1.Market Appreciation: Rising property values driven by external factors like economic growth, demand, or market conditions.