FHA is great if you're going to owner occupy 2-4 unit, but conventional 5% wins on SF-- the mortgage insurance cost is lower and easier to remove.

I have flipped over 35 lower end properties, but hesitate going to high in Naples and Ft.

Does anyone have or know of a company that doesn’t charge an arm and a leg that can do a 1031 that will allow for rehab cost?

I am assuming that you are referring to the fact that as a house flipper you will be paying ordinary income rates rather than the lower capital gains tax rates.I suppose you can look at this as a penalty, but I wouldn't look at it that way. 

We've had the same tenants the last 18 months.Rent: $1,350/monthMortgage, Ins, taxes: $960/monthOur initial plan/goal was to acquire properties and hold them for long-term (20-30 years+) to essentially have the tenants pay for the mortgage and we would make a decent cash flow profit annually and then eventually have a solid asset (trying to diversify investing, e.g. not having everything in retirement accounts/stocks)Just recently the A/C had some leaks and is pretty much on it's last leg and needing a replacement (quote of ~$8-$9,000 installed + fixing leaks in duct work).

The loan balance on some of the pre-foreclosure leads were way lower than the home value.

There is a very well known team, top in units sold in Omaha, that adds 1,000 but they often lower their listing commission. 

There is a high demand for rentals in B areas, but the entry point is much lower for you.Good luck!

It would lower you P&I payment a little more.Hope this helps.

There are limits to going lower and any of that money that isn't spent on property will be taxed (called the boot).Things get tricky when you do combos as an option, then you run into limits of how much they can be worth etc etc.