We are now liquidating our duplex in Port Orchard and expect it to sell quickly as well due to the shrinking inventory of homes, lower vacancy rates and increasing rents. 

@David Guenther can't speak about Tennessee in particular, but what I always look for in first timers is W2 income, sufficient liquidity to close the deal and maintain interest payments for the course of the loan, and a reasonable credit score.

Borrow up to half the new property value to provide liquidity for any cash distributions needed to balance equities.Search "closeprobate fiduciary mortgage"

I also have two debt free properties I would like to liquidate into an intermediary and then use that money to 1031 exchange into the property I am going to be mortgaging to reduce my debt. 

He has the liquidity to do it, just isn't comfortable letting it go.

Don't forget about closing costs for your all-in.RE: Overall debt -- A mentor of mine recommends having liquidity to cover at least 50% of your debt at all times (or at least that should be the long-term equilibrium goal).  

It's actually 60% of balance (or vested balance, if applicable), and has been for some time, but yes.Semi-liquid things, like mutual funds or stocks that you could liquidate tomorrow with minimal fuss if you so desired, get counted at 70% of value.

Less liquid sure, but it will be equity that you can still use for leverage if you wish to do so.

Not meeting their liquidity or marketing needs?

IMO, leverage and capacity are the best benefits of REI.The remaining $800k would need to be invested (and leveraged) as well for proper comparison.The best cap on borrowing in the commercial world is the requirement to have net worth greater than the next loan, which would not be limiting here, and nine months or so liquidity.