@Jack B. there are lots of alternative and "break glass in case of emergency" 1031 options. 

Alternatively the House hack or live-in flip could be the way to go.

Of course, if this becomes the situation your other alternative is to sell the property instead of refinancing it.

Has anyone delt with an 1880's Victoria style home that has a dirt basement ? I'm looking to do a vapor barrier to reduce any potential moisture, Insects, raydon, just better over all air quality is what I'm going fo...

Alternatively you can switch to another lending institution and start the process again for higher ARV and appraisal. 

Alternatively, get someone to manage it as and Air BnB.   

Short-term rentals are booming right now, and can be a great investment, and alternative to traditional long-term tenants. 

@Anthony McGowan An attorney is going to be expensive, but another alternative to look into is small claims court - assuming that the EMD is below the maximum amount allowed in that venue.At least in the states I'm familiar with, you don't need an attorney. 

Alternative you create a bump out in each room for the close, but careful with the location as it affects the layout and function of the room.

as one of many potential issues..An alternate option, if you can find something "habitable", you can probably qualify for a FHA first-time home buyer, or even conventional 5% down loan on a more expensive property with your parent as a cosigner.