My best tenants have credit scores in the 500’s so I don’t go by that.

Rates are moving down and depending on Rate buydown, credit scores, and down payment it could be higher cash flow.

The original price still seems steep especially for potential tenants who may not even sign a lease. 

I was originally planning to put all my monthly returns to pay down the HELOC as quickly as possible so that I can get into the next property but am worried about how to deal with paying the taxes if I don't allocate any of the returns to the side.

Can I 1031 exchange into  5 100k down payments for 5 properties that are of like kind but lower value than original property?

:P There isn't anywhere near enough information in the original post to provide specific advice so I asked the poster to reach out.  10,000 foot overview the best advice would be to speak with a knowledgeable INDEPENDENT insurance agent and be as forthright as possible with your situation. 

But a bigger benefit is that your original VERY LOW offer with Terms very favorable to you might actually be accepted.  

Long story short, the total all in construction costs should have been $245k and I originally was going to list for $330k.

I have been told by one very reputable RIA and a separate 1031 company that after I have been in the REIT for at least 1 year that I can pull up to my original basis out of the REIT without triggering any capital gains tax. 

Originally posted by @Christopher Blanco:I normally don't do carpeting in my rentals, but the new one I have doesn't lend itself to any other flooring.