If you put down the standard 25% for investment property, they would CF slightly better but be a pretty poor return on cash.

Surely the loan can be moved to another product that will accept this condition. 

Rich dad, poor dad.

I've been reading, researching, and listening to Bigger Pockets podcasts for the past several months after reading Rich Dad Poor Dad and falling in love with the idea of real estate investing.

Your friend has shared a link to a Home Depot product they think you would be interested in seeing.https://www.homedepot.com/p/Commercial-Electric-Rectangle-11-Watt-Equivalent-Integrated-LED-White-Emergency-Light-with-Ni-Cad-6-0-Volt-Battery-EMLEDRECT120277/306606874

The exterior looks like it is in poor shape, around the window. 

I was humbled by the level of production and investment experience of my fellow group members.

Less chance of ruining it than almost any other product - like carpet, wood floors, Etc....

I'm glad to hear it's not fraud but am pretty disappointed in the poor service and lack of communication. 

Properties that qualify for 1031 exchanges are properties you purchase with the intent of holding for productive use.