There are multiple options here and as Stuart mentioned, just because the property is not bringing in positive cash flow, doesn't mean it doesn't have other positives to it. 

My numbers were similar to the ones mentioned above: $1.2M purchase and about $300k for bonus accelerated depreciation.

We don’t know any PMCs to recommend in the area mentioned, but since selecting the wrong PMC is usually more harmful than selecting a bad tenant, you might want to read our series about “How to Screen a PMC Better than a Tenant”:https://www.biggerpockets.com/member-blogs/3094/91877-how-to-screen-a-pmc-better-than-a-tenant-part-1-services-and-processesWe recommend you get management contracts from several PMCs and compare the services they cover and, more importantly, what they each DO NOT cover.

Once I complete the 1031 process can I live in one of the units while the others are being rented or will I have to wait a while before I do that?

High competition can drive up purchase prices and reduce available deals.Here's how to decide if BRRRR is right for you:Run the numbers: Use rehab cost estimation tools (like those mentioned in J.

He is going to have to wait a few years until rents catch up.

You probably aren't looking for a conventional loan, since you mention owner-occupied.

Like mentioned it depends on your equity position and long term goals.

You mentioned not having enough capital for an investment loan down payment.

Right now you are only out 3 months rent , wait longer and it will only increase as will the excuses .