And then have equity to make a second purchase - but this time without the constraints of the 1031 timelines.

We are weighing out the cost of rehab vs rental income.

A second option is getting a DSCR loan.Lastly, knowingly leaving deductions off of your tax return to qualify for a loan is mortgage fraud. 

@Scoop SchneiderHow far in the process are you?

A Home Equity Loan is usually a chunk of money you get up front and start making P&I payments on right away for a set amortization period.

The eviction came about after this management company essentially held the house ransom stating they would not vacate the property unless I wire transferred funds to meet their $3,650 demand.

also, most commercial lenders will not be happy with the idea of you living in the property. 

This is proper planning and so smart to get educated way in advance of the first guy so you are totally on the right track.

I'm no expert, but I know several people who have had loans called due on sub to deals because of the way they structured their insuance policy.

You can offset the passive losses from one rental against the positive income from another rental.Therefore, you will likely have a net $3,000 loss across all the three rentals which you would carry forward.If your depreciation was more than $3,000, you basically made cash-flow or rental income that was not taxed, which is good.Best of luck