I have been out fund raising and while I was prepared to handle a primary private lender.

Are they found through traditional channels like Loopnet, or are they off-market?

It decreases after each year but the point of a USDA loan is to live in it as your primary residence.

You can ask the seller to carry back the financing, but your primary lender would need to be OK with it.

Meaning there is a little more flexibility from a traditional bank.

If you go the traditional 1031 route - build relationships and start getting deals sent to you, then, when you feel ready, list your property and really start hounding for your purchase.

R, A and B.In 2010, we converted our primary residence R to rental.

So a traditional selling would not satisfy your goal of being able to leverage most of your equity for another RE purchase.Choices to avoid the CG tax include living there for at least another year or 1031 exchange.If you want to start investing immediately options include a refinance, but interest rates have risen, or a HELOC. 

From what I've seen, traditional financing through a small bank/credit union is probably my best bet.

Since your lease requires the (business) tenant carry a commercial general liability  insurance policy , and that it names you as an additional insured on a primary and non contributory basis, you tender the suit to your insurance policy and that of your tenant.