I want to stop being pennywise pound foolish and get things set up properly. 

This requires an independent appraisal valuing the property at $400k and proper documentation from the seller confirming the $200k donation.Ensure the church is a qualified 501(c)(3) entity, and consult your tax professional to comply with IRS rules.

I don't believe you would properly replace the debt in this situation.

For now it's going to be likely a 6% +/- 1% for duration.

It also will help you a lot to learn how to properly calculate ARV as your buyers will want to work with those wholesalers more than one who is just throwing properties at them.

The thing I'm trying to figure out is how to properly qualify as a RE Prof. 

Without taking a proper tour of the cabin and only driving by and seeing pictures of the inside.

that we’ve learned in our 24 years, managing almost 700 doors across the Metro Detroit area, including almost 100 S8 leases:Class A Properties:Cashflow vs Appreciation: Typically, 3-5 years for positive cashflow, but you get highest relative rent & value appreciation.Vacancy Est: Historically 10%, 5% the more recent norm.Tenant Pool: Majority will have FICO scores of 680+ (roughly 5% probability of default), zero evictions in last 7 years.Class B Properties:Cashflow vs Appreciation: Typically, decent amount of relative rent & value appreciation.Vacancy Est: Historically 10%, 5% should be applied only if proper research done to support.Tenant Pool: Majority will have FICO scores of 620-680 (around 10% probability of default), some blemishes, but should have no evictions in last 5 yearsClass C Properties:Cashflow vs Appreciation: Typically, high cashflow and at the lower end of relative rent & value appreciation.

And this is why you fix your DTI issue, so you can do things properly and not get "creative" and learn the hard way.  

It’s a good idea to work with a qualified intermediary and a tax advisor to ensure everything is structured properly and you’re clear on any tax implications.