A few high level points to keep in mind:- As Whitney said, you don't 1031 into an OZ Fund, but invest in the fund as a 1031 alternative.- Unlike a 1031 exchange you only have to invest the capital gains from your sale, rather than the entire amount of the sale. 

Try to offer value and possible alternative solutions for the property owner.

Alternatively, you will receive higher pricing because you will be viewed as someone who is difficult to work with.  

You'll need to qualify for income or potentially use alternate loan options.

This would be more of an alternative policy when your homeowners policy, rental policy, or commercial property policy has exclusions for "underground pipes" between your home/rental building and the main line out by the street

This certainly does not imply that there are not markets where cash flow is possible or that cash flow is not possible via alternate financing, low leverage, alternate rent models, value adds, patience, etc.best wishes

You may want to consider using a private lender (aka hard money lenders), who offer specialized financing for new ground-up construction projects, providing a faster and more flexible alternative to traditional bank loans.

I have managed and sold to countless clients who have seen excellent cashflow and investment ROI from their first season.

Wood, tile, acrylic and others alternatives (done well) are impressive, durable and functional.

Or would alternatives like small balance commercial loans, portfolio products, or other creative financing options make more sense for a deal this size?