You don't have to trade out of a single family rental into another single family rental -- there are other 1031-eligible investments that might fit by providing passive monthly income. 

Check out bullet point 3 under (a) eligibility requirements which verifies that the borrower must be used for personal use and enjoyment (ie. you cannot use the property if you rent it out more than half of the year).

Lots of headwinds facing real estate, like the following: Inflation Consumer Debt Lack of consumer liquidity-- renters don’t have first and last month’s rent, let alone a down payment to buyOwners interest-rate lockedOversupply of class A multifamilyStagnation of rent growth on assets aggressively underwritten at acquisition Maturation of term debt combined with stagnant rent growth against a backdrop of rising debt rates =investors unable to meet basic debt coverage service ratios on refinance Market normalization forcing operators and investors to rely on market fundamentals (recently) forsaken, while prioritizing expediency of deploying capitalInstitutional and local investors are both frozen by volatility and cost of capital and debtAll that being said, we feel good about B and C class assets we focus on and the markets we are in. let's connect soon 

When you assume the loan, unless you transfer the eligibility to yourself you are working off of the vets entitlement, so as long as they have met requirements you are good to go.

@Cliff H.Your argument doesn’t fundamentally negate the basis of WLI as it has been presented in this thread.

We now keep short list of active and eligible listings for sale.

Are either of you active duty or a veteran who is eligible for a VA loan?

It also sounds like where your property is located that it's not STR eligible anyway. 

Fundamentally I'm paying a property manager to protect my investment, not pocket money on the side from construction arrangements with vendors.  

That's called a credit report and you are not eligible to receive a credit report on any borrower where you do not have permissible use of that information.