I know that to buy beyond 4 properties - traditional big bank financing doesn't work easily and often regional/credit/small banks give out loans once you can show them your positive cash flow & appreciation portfolio.Appreciate all insights from amazing folks on this forum, happy RE investing :-)

However, given his credit and recent delayed payment history, a traditional refinance is out of the question.

@Aaron Klattits not taking advantage of someone if you're upfront and honest about everything. if you're putting in the time and effort and money into a fixer upper for 6 months you deserve to get paid as well as much of that 70% is for closing and holding costs.If someone is behind on payments you deserve to get paid for bringing them up to payment on time.Obviously you should be telling them that they are able to make more money on the traditional real estate market, but if they dont have time to wait 30-60 days then this is where they need an investor

I currently own a traditional long term rental sfh and a vacation cabin that we rent out as a short term rental, plus our home. 

@Sally Fairchild, A traditional reverse 1031 improvement exchange would be prohibitively expensive for such small amounts. 

Then once the property is rented and generating cash flow, I'd like to refinance using traditional 20% down 30 year term.

Your agent with experience can help you identify properties that would be a fit for a 203k loan and then guide you through the offer/transaction process which is a lot of times very different than a traditional purchase.

Hello Barry Je we use Brad Larsen for property management and AMP Lending for traditional financing and refinancing.

Am I still able to finance this deal with a downpayment and a traditional 30 year fixed loan? 

Helloit is my understanding that traditionally when you sell your property you can use the 1031 exchange to defer the taxes on the capital gains from the sale. i know a little about that but i am interested to know if when you refinance and not sell the property to pull out equity from a property can u also use the 1031 for that. for example if i use the BRRRR strategy to buy a 4 plex for $300,000 i use a conventional loan and put down 20% of $60,000 making the loan amount for $240,000 and put in $40,000 into rehab the property so i have $100,000 in and the property then appraises at $400,000 so i refinance the property with 20% down of $80,000 in equity making it a loan amount of $320,000 out of that of course the original loan gets paid back of $240,000 leaving me with a check for $80,000. so does that $80,000 count as capital gains?