Alternatively, I would refinance into FHA (if possible) or a conventional loan, to recoup my entire entitlement.

What seemed liked a great deal quickly changed after just finding out the existing septic system has to be replaced with an alternative system, which is going to cost $25,000 to $30,000.

Alternatively, there are situations in which a true cash purchase is going to be necessary, e.g., a short timeline or a property that is in poor condition. 

Invest in real estate fund looks a good alternative option since it is passive and can diverse the risks as well.I didn’t find a lot of discussion related to this topic so decide to create this forum.

Here is an alternative to the 1031-exchange and one that could potentially fix your problem (of there really is one!)... 

No debating, no discussion, no alternate options.While you are renovating it, educate yourself on how to properly screen renters.

Does anyone have any experience/feedback for them, or alternates where you can invest and earn passively?

Final few questions: If I don't have an immediate friend/family connection is the BP community my next best bet for a mentor or are their alternatives? 

Then if your first and second choices go badly, you will have an alternative that can preserve the exchange.

This means approx. 125k out of pocket: anyone have alternate creative suggestions?