After all, we became real estate investors to improve our lives, did we not? 

Its not like ill be using Heloc the entirety of the loan. 

I currently own a property under a USDA loan, which has $100k in equity and generates $250 a month in cash flow from rent.

Get into the property with cash and refinance on the back end with a commercial loan that doesn't require a 12-18 month seasoning period.

geGet qualified for a loan.

Property Purchase : $4.0M 1031 Exchange Money: $1.05MHe has loan approval at 25% down for the commercial property and he will be pretty close to being completely wiped out with attorney fees and other allowed 1031 expenses. 

I utilized (and maxed out) my credit cards to afford the materials necessary to renovate the apartments (I know bad move) therefore I cannot acquire a loan of any sort to fund the initial funds necessary to acquire a hard money or DSCR or rehab loan.

So, I do not need these sources of income in order to afford the property, but I've been told that I may need a farm loan?

It's also extremely hard to win with an FHA loan to house hack in NJ because of the competition and the repair issues that won't pass FHA.

You will definitely need too look into an FHA 203k loan if you are going to owner occupy it.