I decided to give them the option to break their lease and leave, if they so choose, which they haven't responded to yet.My question is, has anyone dealt with a similar situation who may be able to give some advice on this?

I have good credit, but not sure how to obtain financing with my current income so I am looking for financing options that don't require me to provide 2 years proof of income.My current plan is to do the following but would like a professional opinion before proceeding.

My biggest thing is with the options below, what puts me in the best shape to Grow/Scale?  

Just wanted to do some research and see if this is the best option or if there are better deals.

,You have two options after a 1031 exchange. 

Option 1.

One option would be if you cover a certain amount and if it goes over X  amount they need to reimburse you. 

You can use this tool to figure out that part: https://docs.google.com/document/d/100dRzu-iQEIZbR1adxIASdH2...Once you have that you should engage a local broker to discuss the options for those types of uses in your market and they will be able to help you understand the overall picture and cap rates of the various options.

@Samuel Metcalf- thanks   1) I would recomend getting a HELOC in place on your primary residence duplex  for  as much as  possible...this should be available for  free or a low  cost and the rate will be variable in the  8-11%  range ...prime rate +  margin of  1-3% ) ...the min payment is in interest only payment on outstanding balance   2)  use the heloc for the  remodeling  costs ...pay it down as  agressively as you can   3) on the  purchase of the investmenet  1 unit -  you are  allowed to put as little as 15%  of the price for your down payment ...the pricing you get for the loan will improve  as your down payment  grows so you might look at  75% /  80%  and  85%  ltv  options 

Once you and the seller sign a contract, now you have the options to either keep the property yourself, do flip or long term hold, or assign it to someone else if you don't have the capital to flip the property.