Despite end user/consumer having restricted fund's/affordability.

He's not imposing them on anyone else.

Once the 1031 exchange is completed (again assuming 1031 compliance), I am free to leverage the property in any way, without any 1031 restrictions.

@Heather FultzCondos can have the advantage of the maintenance of the outside taken care of but can run into issues with HOA and restrictions on STRs that you can't control. 

These cities can easily have more restrictive landlord policies than a red area in a blue state (like Colorado Springs for example, probably less restrictive than any of these cities). 

We'd like to try a short term rental but the Oregon coast and Tahoe (two places I love) are extremely restrictive on doing this.

As page 1 of the lease states- "This form lease is provided as a member service by the Chicago Association of REALTORS and is restricted to use only by MEMBERS of the Chicago Association of REALTORS and those who are party to a transaction facilitated by a Chicago Association of REALTORS member."

Fannie/Freddie have more restrictions in terms of experience and net worth to qualify.

It is important to consider local regulations, as Seattle has specific rules and restrictions for short-term rentals, which might impact your ability to rent out the property when not in use.

., etc.) will not increase your opportunities for attractive financing and typically restrict you to the private money market (low LTV, premium rates and higher fees).