I've encouraged them to contact a 1031 specialist, but this question has me curious so I wanted to bring it to this forum for consultation as well.

I have realtors that can assist you as well. 

And while there are good guests/tenants at all price points, the averages tend to be that lower price = harder on property.If good area, the price implies major renovations, in which case, I would think you are looking at well over $100k rehab.  

Assuming  this revenue ruling still stands, it mirrors the SC situation nicely, meaning it would support your acquisition date of the real property not starting until you have taken possession.I think this would be highly dependent on the terms of the local jurisdiction as well, so what might be correct in one jurisdiction, could be completely wrong in another depending on the rights acquired related to the property.But happy to be pointed where I am wrong!

Rather than asking non potential customers in here you can get a better result from potential customers, As well as tour of the competition.While you are there, maybe take some pics, and make a written record of rental rates and what features they have for that price.In a nutshell, become an expert on this specific investment in your local area and neighborhood, in order to try to reduce the risk of just guessing.Good Luck! 

My W2 job was going well for the past few years, but recently have been large gaps in steady work.

You can only have 1 FHA loan in your name at a time but you could buy another property after 1-2 years with a conventional 5% down loan and househack that as well and you can use a portion of the rental income to help you qualify for the payment. 

I don't have a network of investors I am part of, and honestly I don't think these properties are especially well-suited for an investor.

You can start there, but I know small town politics very well and I'm sure they "omitted" to see the deed restrictions. 

HELOCs generally are not so well suited for long-term debt as a mortgage.