I think where you will be questioned the most is on the new purchase transaction since you have owned your current home for under 12 months.

Did the transaction on my own.

(Think of it as you are the "bank" in a typical REO transaction). 

I also invest cross country and love it.

Personally never heard of this scheme or way to set up transactions. 

I've brokered $75 million in DSCR and over 315 transactions.

Texas division of banking (whatever they are called in that state) probably should have done something but appears they didn’tDHS actually is one of the departments that prosecuted criminal financial crimes - most think of them only as border patrol as their major function but they also investigate this type of activityhttps://www.dhs.gov/hsi/investigate/financial-crimeTime will tell if these cases ever go anywhere but for those involved probably just happy someone finally picked up a phone to atleast listen to IRS criminal is another good one to sic on them..

If you would like to get more than the cash you paid for the property and use the new appraised value, the shortest period I've seen is 3 months of waiting period between when you closed on your last loan or transaction to when you close on your next loan / transaction.More on DSCR loans in case helpful: DSCR loans won't use your income to underwrite the loan.

I've dabbled in hard money for a few years on both sides of the transaction and here are the 3 types of people in the business.

A 1031 Exchange is a real estate transaction that takes advantage of a Federal tax law, so the state you do it in is of no consequence.