You can do a 1st or 2nd Mortgage DSCR loan and be able to close in an entity.

An investor should have every property held in the right entity and not in their personal name, no matter if it's a LTR or STR.

Related parties are defined as family members or entities in which you have more than 50% control.

That's up to their broker, who is not part of this LLC.Additionally I'd keep in mind that if 25% of their sales are from themselves, family members or corporate entities they have a financial interest in, then their E&O insurance will likely be voided.

@Brittany Moreland - If I were the type of individual/entity that had hundreds of millions of dollars available to invest, nothing about what you're suggesting would sound appealing.  

In a 1031 Exchange, the same entity must hold title to both the sold and purchased properties.

I'm still new at this and I own the houses in the name of my trust, I haven't set up any sort of business entity for them yet.

Get a lender, enter into contract, close escrow, enjoy your new home. if you have less than 30 days, you would need the seller's cooperation to contact the foreclosing entity to see if they will postpone to give you time to close the deal. it's not guaranteed and the lender is under no obligation to do so but if everyone wins (seller sells, lender gets paid off in full, you get a home), most lenders will provide a small window of time to get it done.

The program also helped them set up a legal entity for their rental business. 

They may have a separate system or entity that is used for holding properties vs the business itself for legal protection.