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1031 exchange?

I’d also consider potentially the 80/20 rule of selling off your worst (you decide: lowest cash flow, biggest upcoming CapEx, neighborhood going downhill) 2 and rolling them into a smaller multifamily (4 doors / 1 mortgage) through a 1031 Exchange. https://www.biggerpockets.com/topics/877606

If I go after a nicer property in less need of fixes, seems FHA will be my best bet.

Hello BP Community—hoping to get some help here on a 1031 exchange.

Where I'm located your best bet is to get someplace that needs some work so you can force appreciation while having a small mortgage obligation because your renters are covering the majority for you.I think you should be careful with your numbers in these situations so you know what to expect for income/expenses going in and aren't blindsided.

We exchanged about 3 sets of offer/counter offers until we came to agreement: I would wholesale his property to a cash buyer with no inspections.

Your best chance of success is finding someone who you can learn from in exchange for your time and effort.

I do not think and I wouldnt bet that prices would drop. 

More facts would be needed to give you any advice worth listening to, BUT it seems from your description that you have a bird in the hand now and are considering exchanging that bird for another bird in the bush.