Specifically, they will be looking for capital for a down payment and operating expenses and reserves, capability to obtain financing in an amount sufficient to close the deal.  

Lenders in this space tend to create their own form docs in order to sufficiently protect themselves.Title company has a certain set of docs, this usually pertains only to the Title Policy on the property. 

Would the properties need to be free and clear in order for the 1031 to execute or is simply owning, say, 10 turnkeys at $100k each sufficient enough to 1031 then purchase a larger MFH.

Did you have access to sufficient funds to complete the deal? 

We are professional property managers, we have a long successful history of buy and hold investing, we have great credit and sufficient income.

While I like your property and the asking price seems reasonable, the specific terms of the contract do not allow me room to conduct sufficient due diligence on the property. 

Does the tenant have a right to deny request to enter the property if sufficient notice is given?  

If a MBS full of junk sub-prime mortgages was given a C- rating from the ratings agencies, then they would have to be priced at a sufficient discount to attract buyers and there wouldn't be as much demand for them in the secondary market. 

If you can show sufficient income on the first rental, I don't think youll run into any problems.  

When they have sufficient water and power and sewage disposal the govt will put mfg in near one of the empty cities .