Both options appear to be promising.

And, a new post appears just when interest has died down.

The issue you have is that it doesn't appear that you have an investment property if you are letting a family use it rent free.A 1031 exchange requires the property that you are selling to be an investment property.best of luck.

Looking at other listings, it appears that it is priced well, a little lower than other comparable homes.

It appears that Pennsylvania requires a contractor to provide a 12 year warranty for labor and materials, what would be the outcome if the customer supplies materials?

It appears some folks are confused about the way this coverage typically comes into play.  

What I can say is your property 2 does not appear to be an investment property (it should be purchased for owner occupant) and that you should be able to do better. 

The risks are:- non payment by buyer and must foreclose- lender calls the note dueThe answer to the 1st is to make sure there is a good down payment so dollar wise this does not harm seller.The answer tot he 2nd is to use a land trust and appear Garn St Germain compliant.Just my 2 centsAlan

But they appear to be suggesting that you're paying retail. 

The benefit of using DSCR style loans is that they typically do not appear on personal credit reports (unless there is a default).