Let’s say you have 12 lots and if everything went perfect in the exchange you would recognize your $30,000 profit per lot across the board.  

It is DSCR based and no personal tax returns are required to qualify.

That would not qualify for a 1031 exchange. 

Keep detailed records of repairs, improvements, and rental income, and consider working with a CPA specializing in real estate to ensure you're taking full advantage of deductions and strategies like passive losses, home office deductions, or even the Qualified Business Income deduction if applicable.Good luck!

Hope is a bad strategy.The only on market strategy that I think can work is paying cash/line of credit/hard money for a property that does not qualify for conventional financing.

How many mortgage lenders have you spoken with to get qualified and discuss allowable down payment options?

I assume that you’ve done a thorough investigation of the tenants, and found them well qualified.  

And other questionsIf I was reviewing this for one of the investors that buys SubTo deals from me, I'd want to renegotiate the down, remove the balloon, make sure my investor has 6 months of payments in reserves, make sure my investor can qualify for a refinance in the even the Due on Sale got called.I would need more answers to know if I would do the deal. 

Several have mentioned utilizing low down payment second home loans for qualifying.

I have properties in Class B-A minus neighborhoods.Lets say i have 50 prospects over the course of 45 days. 40 of them will be an absolute waste of time5 might really like the property but are not the best qualified3 might be really qualified but might be looking for something else with some other ammenties2 will be solid candidates.This will be a far less favorable result In an area that is pushed by a lot of gurus/wholesalers.