What be a realistic alternative strategy here?

Here's how it works for conventional loans: https://www.biggerpockets.com/...Alternatively there are commercial/portfolio loans that don't have seasoning requirements.

Also, set up some alternative sourcing channels outside the MLS. 

Alternatively you can say that the insurance company needs basement and all common areas cleared for emergency egresses.

You'll pay tax on the amount of cash you pull out but you'll defer any remaining profit in the 1031 exchange.Another alternate approach would be to do a complete 1031 exchange into an investment property (or more than one) and then cash out refinance and use that cash to reimburse yourself for the expenses and let the tenants pay the mortgage.Or yet another option related to that. 

That looks like a great alternative to replacing the counters. 

I decided to start an alternative route to pay for the down payment on my first rental property, and hopefully many more to come. 

Or alternatively, if anyone has been based in NJ and invested elsewhere. 

Any suggestions for alternative funding?

The alternative is you raise funds a deal at a time after you have a deal under contract.A fund requires a different filing and there are different (higher) costs.I am not saying you should pick one or the other.