Also, we explored the option to do a boundary-line adjustment and compensate the neighbor for it, but he has a grandfathered clause in that allows him to build on the lot without meeting the new city requirements.

This program is specifically designed to help finance the construction, acquisition, or rehabilitation of rental properties with multiple units.To qualify for a USDA multifamily loan, the property must meet certain eligibility requirements.

So there are many good lenders that do no have a license as its not required.

A landlord seeking to evict a tenant must satisfy one of the requirements defined in New Jersey's Anti-Eviction Act.

@Andrew Postell, I pulled it off the GRM site, which may not have updated ratios: "DSCR loans require borrowers to meet a minimum DSCR threshold, typically around 1.25...." https://www.rate.com/resources/what-are-non-qm-loansI spoke with a loan officer who said it may be lower now to reflect the market, so you may be right, but I am awaiting the approval and don't have the final ratio. 

This would let you satisfy your 1031 exchange requirements but also scratch your conservative itch. 

I'm wondering though, if I market them as lease option/rent to own, will a PM show the property, handle paperwork including the option contract and then manage the property or does that require a real estate agent?

or if LENDER B's approval and CTC are required to match the price?

So, given that you are a general contractor and master electrician, the obvious strategies that come to mind involve physical rehabs of a property.

I could fill you in, but Bigger Pockets requires you "connect" by clicking on my name in order to do that.