In the same amount of work I could find an undervalued deal in my market through existing channels.

Any profit you can make from STR will help with the mortgage, but it's a bad idea to count on the STR to make a certain amount of money if that's the only way you can afford the house. 

Ultimately, you want a good amount of properties to convert to leads by nurturing and creating relationships with the owners, being the ones to solve their problems, or offering them the best price possible.

When using the 1031 it will restrict the amount you have to spend on a new property.

My loan officer just came back to me apologizing for the oversight and informed me that the CD will reflect the right amount for cash to close.

Yup, you said it.. a "minuscule amount". but that minuscule amount is still a huge number.

Our investment to value (ITV) in the notes we purchase is usually in the 50-60% range, a significant amount of equity to protect our position and our private capital position. 

This process requires a significant amount of effort.

I have a decent amount of friends from the Parma area and I can say that's very smart that you want to start by investing there.

However, the benefits of this type of transaction can still be safely realized with proper structuring and a good amount of equity injection.