This means the borrower requirements for a loan will be based on the loan to value as a purchase transaction, not a refinance.

@Andy Cross PM stands for Property Manager

Novice investors tend to ignore the beta in any given real estate transaction when it should be a major consideration particularly when working a creative financing transaction. 

As @Ryan Kopczyk mentioned you need a HUD registered title company for closing your transactions.

Investor and second home borrowers with five to ten financed properties are ineligible for cash-out refinance transactions unless all of the delayed financing exception requirements are met.Most lenders do not link the LTV to the number of properties you have.  

The TRID Rule combines four existing disclosures that are required under the Truth-in-Lending-Act (TILA) and the Real Estate Settlement Procedures Act (RESPA) for most real property-secured closed-end credit transactions.

Transaction cost is roughly $40k, not including staging and other miscellaneous stuff that you have to prep before selling. $250k - $500k tax-free money is nice, but losing almost $50k just to sell the house may not make financial sense.Cash-out refinance or obtain a HELOC on the property prior to renting it out might be a good idea, but it seems kind of late now.

@Ash Patel  Hi Ash, There are a number of possibilities when structuring a 1031 Exchange transaction. 

Every transaction is different and unique, it is not a cookie cutter process.

Perfectly simple transactions completely stalled while each t crossed was subject to attorney approval.