If not, are there other grants or down payment assistance programs for people who are repeat buyers?

You need one or the other, preferably both.Since you don't have any money, you'll need to focus on knowledge.Besides building your network, you can also start looking at properties to find market inefficiencies you can flip to an investor with funds for a fee.Wholesaling is the most common form of this, but you can do this in several different ways.Also, what happened if you found a "tired landlord" and got them to accept your offer of 0% down, but $x/month payment to take their problem off their hands via seller financing?

So, I'm trying to decide between the two options below:Option 1: Buy a couple of properties and split the money from the 1031 exchange for the down payments.

it combines the advantages of owner occupancy, such as a lower down payment loan, with investing.

Terms:$160,000 purchase price10% down payment3% interestBalloon payment in 5 yearsMy plan was to just make the payments on the land for the next 3-4 years, ride the appreciation wave and sell the land in the same condition.

He wants to rent it because of  that estimate even though we would be losing money every month because our mortgage payment is $2700.

I see some investors in the central Florida area happy with break-even since they are looking for appreciation and on the other side, I also see investors looking for PI mortgage payment to be 50% of market rent so they can cash flow right away.

If you are doing management for others (Third-party Property Management) you need a Real Estate License, and your Broker has to maintain the trust account and allow you to do Property Management. 2) You don't have to be a Broker to do PM.

@Deonte Hill-  thanks ...trust your instinct ....yes - massive red flag . unless you have unlimited cash to  address  unlimited issues - be wary 

Section 8 is great, as it is guaranteed rent payments each month.