"Cash is King" is 100% true, at least in the context of sellers looking for a cash offer, and the fact that financed buyers simply cannot compete with cash offers in the vast majority of cases. 

If I can make the risk of loss pass to the buyer with a lease that has sufficient terms, can I 1031 exchange the option money?

For instance, the vast majority of my purchases are HUD homes where it is difficult and in many cases not possible to turn them on. in cases where you cannot turn in utilities, one can still get a visual inspect the foundation, roof, electrical to ascertain the age of the breaker box and type of wiring as well as due a pressure test on the plumbing.

A network of contacts to ensure sufficient deal flow

As a known entity who CLOSES deals, and has sufficient cash available, I do get deals presented to me with sufficient return/risk to entice me to complete the deal as presented or with little modification.  

The vast majority of lawsuits against Landlords are for wrongful eviction, security deposit disputes, and Fair Housing Violations.

That's sufficient for written notice.Personally, I would wait two days to see if she's out before taking any eviction action that may cost money.

I know the fear mongering headlines can be overblown with XYZ hedge fund or private equity firm buying vast sums of SFHs in one stroke, but it is seemingly more common in the last few years.

Would a letter of intent be sufficient?

Youll find the vast majority of investors are located outside of the market theyre investing in.