This being said, I don't believe we'll be able to meet the income requirements to qualify for a conventional.This leads me to believe hard money or private lender is more the only option to get my foot in the door, use my business to make repairs at very good rates, build some equity then refi once the balloon is due. 

. $50k sounds like a lot to you but with the price of materials and of qualified labor, it does not go too far.

Do you have an idea of the long-term rental amount, and would that be sufficient to meet the DSCR ratio needed to qualify for the loan?

Hi @Ben Lindquist, The 1031 Exchange Qualified Intermediary is a crucial part of any successful 1031 Exchange transaction.

There is very little profit when undertaking $45K renovation projects therefore most qualified contractors will pass on those bid opportunities. 

The only way they would seriously consider a higher offer from an unqualified buyer is if they have no offers from better qualified buyers and their back is against a wall. 

This is where your qualified intermediary takes title to the new property and holds it until you are able to close on your old property.

I'm a 23 year old military member and will be a veteran within 2 1/2 years :) and I qualify for a VA LOAN.

I am not a tax or legal professional so please take this to someone much more qualified.

Use an agent to help you get qualified tenants and documentation in order.