Or maybe rates stay high and he starts feeling the squeeze with his investors if/when he has to refi at 6% or sell at a price I would have paid today.Back to Bjorn's point, keep reviewing and underwriting deals.  

I am mostly just trying to discover any tips or tricks or identify any strategies that I could potentially be missing out on.

I don't know anything about your situation, but possibly think about selling the home and leaving it up to the next buyer/investor to deal with.

I have a mix of flips, buy and hold, buy and sell on contract for deed, one vacation rental, and one current apartment syndication.  

To get it at short sale, the seller going through the foreclosure would have to be convinced it is the more favorable option pretty soon and choose to sell at a lose than risk the consequences of foreclosure.

In late 2023, I got an email from the owner that he was ready to sell.

The properties you are selling and buying in a 1031 must be properties you intent to hold for investment use. 

What if you have to sell quickly and then the town takes your second bathroom and your price drops 25k?

Looking to potentially sell or 1031 that eventually.

Ultimately, should the business not succeed or perform as well as you intended, owning a property in a strong location will be attractive to other users that you could choose to sell or lease to yourself.