Why does this seem too good to be true? 

I'm assuming the main reason for the 1031 is to increase cash flow, right?

@Troy Chambers feel free to reach out to me, I'd be happy to discuss/help if I can.

No, banks do not allow a seller held second now a days due to risk and new guide line changes. 

Would anyone be willing to DM me a copy of their REPS log? 

When investing in real estate, having multiple exit strategies is key.For a single investment property, make sure the numbers work for both scenarios: 1️) If you decide to sell the home, the deal should produce a solid return. 2️) If you need to rent it out, the rental income should cover expenses and provide a profit.Flexibility is what saves you when things don’t turn out as planned.

There are many other lenders out there and they stick to what they promise.

That's a good problem to have Pat! 

I am happy to talk to you more about it.

Maybe your situation is different and if you don’t feel comfortable in the neighborhood then this may be a moot point anyway.As for FHA, my understanding is that you must intend to live in the house for a year  it sounds like you did intend to, but due to unexpected circumstances- lead exposure and unexpected unsafe neighborhood- you have to move.