I've heard credit unions and smaller banks can have more favorable terms or specialty products, as well as business lines of credit.

I understand that states such as New York and California are more so favorable towards tenants.

Benefit with them is a conventional offer looks a lot more favorable to a seller and is perceived by them as a clearer path to close. 

But your broker is right, its still possible, just a lot less favorable.

@Tania Lopez If you and your husband are favoring selling and doing the 1031 route, you should start talking to a Qualified Intermediary and keep them in the loop as the process progresses.

We have saved some money over the past few years but need some help locating deals.We are wondering what markets are most favorable for the strategy?

You think prices will go higher when loans are now more favorable for primary residence?

Given the home is in CA and the legislation seeming to favor tenants due to the Covid situation... how can I guarantee I will be able to move into the home if my offer is indeed accepted?

Caveat: if you are bringing in a huge amount of money say 50% of the raise then that might tip the scales in your favor)Ask you can tell this is a really grey area.

Your overall experience in a passive investment involves much more than the returns, so when you find a sponsor you like, do yourself a favor and get clear on what your experience will be like AFTER you have invested.