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. 

@David Kilgore@Ari Newman is absolutely correct in his explanation of the 65% ARV loan product.

There are some pretty cool discounts on various products and services offered as Perks to BP members that you might want to check out: https://www.biggerpockets.com/perks/proI really like the alerts feature that can quickly guide you to current topics that might interest you: http://www.biggerpockets.com/alerts

If you have not, great books to read are:Rich Dad, Poor DadThe Millionaire Next DoorCash Flow Quadrant Tax-Free WealthSet For LifeRental Property InvestingThe Millionaire Real Estate InvestorThe REAL Book of Real Estate So Good They Can’t Ignore YouYou are more than welcome to reach out if you have any questions.

Paint over is just a poor choice and will look bad. 

Any good products out there for something like this?  

Actual income production is not a requirement - but generating income is a  very strong indicator of your intent to hold it for investment. 

The problem with all of these coaching models and books and podcasts is that they are selling a product, which is fine, but it does not necessarily translate to real-life applicability for most people.

This is a great forum with very knowledgeable members that will help to guide you in the right direction.I really like the alerts feature that can quickly guide you to current topics that may be of interest: http://www.biggerpockets.com/alertsThere are some pretty nice discounts on many products and services offered as Perks to BP members that you might want to check out: https://www.biggerpockets.com/perks/pro