If that means renting out part of your residence, that's great for cash flow and experience. 

After they moved in, we started to get some mild complains from our neighbors (for the rented unit which was our primary residence until we moved out in another house a few miles away). 1.

Investment Info:Single-family residence buy & hold investment in Lucien.

The only way they would seriously consider a higher offer from an unqualified buyer is if they have no offers from better qualified buyers and their back is against a wall. 

If the owner does not meet that residency requirement, another human being must be identified as the local agent in charge.

There is very little profit when undertaking $45K renovation projects therefore most qualified contractors will pass on those bid opportunities. 

Qualifying without the traditional debt to income ratio requirements can make situations like your own, a bit easier!

As already mentioned, he wouldn't be able to use rent from roommates to help qualify but based on the numbers you shared there should be a VA option available considering how much flexibility there is. 

Here are a couple of ways you could structure the deal:Lease Option with Seller Financing: You could lease the property with an option to buy later, allowing you to rehab it while giving the sellers time to find a 1031 replacement property.Seller Financing with Deferred Payment: Structure the seller financing with no immediate payments, allowing you to refinance once the property is appraised, and the sellers can complete the 1031 exchange when ready.Escrow Holdback: Transfer the deed into an escrow account, giving you control without immediate transfer, so the sellers can take their time with the 1031.Third-Party Facilitation: Use a qualified intermediary to hold funds and facilitate the 1031 exchange while you refinance.These options allow flexibility for both you and the sellers.

The big hurdle you will have to overcome is qualifying for particular price points.