I had one person make an inquiry and was interested but has not done any part of the process so not someone I can consider a potential tenant yet.

How would we scale this or potentially 1031 exchange into a larger deal (commercial)?

Seller finance and reverse contingency are some potential options but both are tough to get in today's market, although not impossible.

I have an questionable potential tenant and I am a bit leery and it lead me to this questions.

@Monil ShahUnless the buddy is also willing to sign up for taking any potential loss, they aren't an equity investor. 

The higher the DSCR, the better rates you could potentially get.The primary collateral for a DSCR loan is usually the investment property itself.

I recognize the value of building a strong network and believe that partnerships are instrumental in achieving success in this field.I am reaching out to seasoned professionals like yourself with the hope of gaining insights, guidance, and potentially forming partnerships that could be mutually beneficial.

It can potentially limit your buyers when/if you go to sell.

. - Even as part of my management company where we managed over 400 rental houses, unless it was a true emergency such as a broken water line, dangerous electrical hazard such as sparking lines, a gas line leak, etc we did not deal with emergencies in the middle of the night.

There’s still a housing shortage and the upside potential for appreciation is excellence!