Since you occupy one unit- that unit will qualify for the 2/5 year rule (if you've lived there for at least 2 years) for the 121 exclusion and be tax free. 

Think scholarships (even if you don’t qualify for academic ones there’s thousands of random non academic ones if you do the research), community college then state institutions, etc.

If OP is 4 month slate b/c OP isn't qualified, is dragging their feet on paperwork, etc, then it will not accomplish anything.

Only time I accept anything less if is it’s multiple renters and the other one or ones can qualify without the one with the poor credit score, someone comes from another country and they give me a printout of there credit score there, or the have no credit cause they’re actually fiscally responsible and have zero credit card debt at an age where most have plenty. 

We are getting a great deal (buying from a family member) so it will be income producing and we already have other multifamily to qualify as experienced. 

I don't have a traditional income (just started a digital company with international clients, and most of my equity is based on stocks), so I don't qualify for regular loans.

I will continue to pay down the mortgage as I take the steps to qualify for the most appropriate loan.

You can put 20% down and avoid the mortgage insurance premium (mortgage insurance for conventional has MANY choices: lender paid with higher rate/ split/ monthly.... and so forth but it is much cheaper than FHA 1.75)Home Ready may have income limits and county limits FICO 620 minimumDifferences are: cost, can you qualify, how the individual regulates your inspections which is lender specific

Will this qualify for a 1031 exchange and how would we list it on the exchange.    

There’s a barrier in the business of getting bank loans, the investment qualifies itself, but the bank requires someone that has sufficient net worth in order to sign on the loan.