Hello, my name is Ben Mudd and we own a fix and flip company named Grace Renovations, LLC. 

Many don't qualify for low down payment/FHA for a variety of reasons, especially the ones sub 200K. 

A 1031 exchange is a great way to indefinitely defer the tax and use it to grow your RE portfolio, and build long term wealth.The most important factor in a 1031 exchange is that your qualified intermediary must be in place prior to the closing of the sale of your old property.

Thus allowing you to set automatic late fees in case the tenants doesn't pay before the end of grace period. 

Even if you can raise $10mm, but have a small net worth and liquid cash, you won't qualify with the best deal. 

@Bruce Schussler   I am always suggest my borrowers stop at 60% loan to value when utilizing this strategy.  60% is the loan to value where the loan would qualify for the best possible rate.

It's also worked pretty well if doing STR since you can just qualify with AirDNA projected income, even if you have no STR experience.  

(Because of my podcast, I have access to many of them for one-hour discussions, but I know all of them would give a qualified investor 30 minutes at any time.)

@Grace Hartman Most of the time sellers offer credits instead of fixing repairs.

That does not qualify as "managing repairs."