I am planning to be conservative for the 1031 exchange, which means to satisfy the minimal requirements for the change, not to spend my down payment to the house in the new investment.

Like others have said here, at the end of the day, the LLC is to protect your assets and minimize liability (if someone comes after you for any reason, they're really coming after the business entity and you won't lose your 100 grand sitting in the bank and your own house).

I can’t have it both ways i.e – minimize my income for tax purposes, but present higher numbers for borrowing purposes.

This is a real concern that ordinary people--BP's target audience--have that experienced investors with a healthy diversified portfolio and significant reserves may not need to worry about as much.I don't think that using operational cashflow as the core metric on BP is an error or a misunderstanding, I think it is a conscious choice due to it being a simple and safe metric that minimizes the likelihood of newbie investors experiencing overwhelm or major loss early in their investment careers and going back to "watching dancing with the stars". 

One more idea:  properties in the 2 to 4 unit range may qualify for FHA loans, which would allow you to put a very minimal down payment. 

I have a couple rentals & I also do fix & flips & I definitely think you should keep your work minimal on this property as long as you’re keeping it a rental. 

Minimal rehab necessary, roof with danosa(good shape), only 1 kitchen to be replaced and 1 bathroom and a paint job

Now there is a online marketplace specifically established to do this while minimizing the impact on the tenants.

The current rehab costs are minimal as the home is in great shape, so ~3000-4000 range.

Well, okay, I don’t like it and I do minimize my tax footprint.