A 1031 must be for equal or greater value or the funds in excess of the value of the new purchase are taxable.

Assuming you are both working and the rentals are long-term, rental losses up to $25,000 can offset W-2 income if your MAGI is under $150,000, with excess losses carried forward.This post does not create a CPA-Client relationship.

The issue we are running into is that lenders are not recognizing the excess amount he earns as income, therefore it looks like he will not be able to afford any loans that he would be approved for.

However, I see this as a vertical integration and bringing more capabilities in house to make more money instead of hiring an outsider firm. 

Can you please refer a capable Property Management suggestion for Memphis, TN Please.

Due to the nature of the shorter lease terms, I am spending an excessive amount of time updating my Excel spreadsheet, MLS, business website, Airbnb, VRBO, and other platforms.

It is harder than doing it yourself but having capable awesome young ladies in this world hopefully will raise the bar for the lazy dudes. 

California charges a minimum tax of $800 a year per LLC, and more if you have gross receipts in excess of $250k.

It may be that they are underwriting the property at a significantly different valuation than what you are using or that they feel that you or the deal is excessively risky.

Again even if you have great credit as you start to add more credit cards, mortgages, auto loans to your credit you can also be viewed as "High risk" due to Excessive trade lines in credit or higher DTI - debt to income ratios.