And, as I mentioned, I am sure there are a number of differing opinions from others on this as well.

Last but not least, I don't see you mention having a 1031 PRO guiding you through the process.

It is subject to limitations as @Caleb Heimsoth mentions, but if it does get limited, the loss can be carried forward.

Industry folks can get their hands on discounted loans fairly easily, so your other option is to sell to a passive investor or someone unfamiliar with the industry.You mentioned before that the loan has a pre-payment penalty on it, but it isn't over the life of the loan.

Even if you took them to small claims court and won collecting is a whole other ball game.This is why as mentioned they get draws for various steps of completion.

I failed to mention the property is located in Washington state, although I am based in Los Angeles.

As has been mentioned already, you know what you have available to you, and you can make sure to calculate your costs properly to ensure any deal you are looking at really works for you. 

The loan amounts you mentioned are EXTREMELY difficult to finance long term and when we do them they are pricey.   

I've seen posts that mention that some agents dont know what investors are looking for in a good investment deal.

Thanks @Caleb Heimsoth,  The rates you mention are for non-owner occupied, right?