The only real danger here is that you didn't get to leverage the skills of your team for this one, so you may have bitten off a non-deal after all.Depending on your comfort level with gaging areas to buy in and rehab budgets, I would consider making a connection with a Property Manager or a savvy agent in the area you are targeting and then pausing your teambuilding until you have a deal. 

I know normally ppl use a 1031 to level up, but has anyone out there leveled down to mitigate their risk level? 

So in a perfect world seller would keep their existing mortgage (which I believe if owner occupied conventional) and a portion of our payments would go towards paying off that mortgage.Wraparound mortgage seems like the best bet and I would like to try and mitigate the risk of seller defaulting on their mortgage by paying through a third party if possible.  

The Consumer Financial Protection Bureau announced a new rule today to prevent a wave of foreclosures due to coronavirus.Here is a summary from the New York Times:“In most cases, lenders will only be allowed to foreclose on a home if it is abandoned, if the borrower has not responded to messages for at least 90 days, or if the borrower has been formally evaluated for all available “loss mitigation” options (such as a loan modification) and none are viable.Servicers will also be allowed to proceed with foreclosures for borrowers who were already 120 or more days delinquent before March 1, 2020.The new rule also allows mortgage servicers to more easily offer some loan modifications so long as the changes do not increase a borrower’s monthly payments or extend the loan’s term more than 40 years beyond the modification date.”Nice for current homeowners but with the current high prices and low inventory, anyone hoping for a wave of foreclosures or crash may be waiting awhile. 

This will be very difficult to get an approval, unless there are mitigating circumstance, especially given that you want to move from a SFR to a Duplex.

Its in a good growing area in south Louisiana, but currently in a less than desirable area of town that's used to, but reduced, known to be dangerous but its shifting into a working class spot with new grocery stores and lots of growing neighborhoods nearby. 

And anyone in the development side of things can tell you that there is simply no way to develop affordable housing without cost mitigations.

The danger point comes when the Capex items loom, and that is when a lot of long term owners decide to sell.

due to the dangers to the Buyer if the Seller runs into financial distress and the property ends up on their list assets in a court proceeding.  

SF= tired older landlords/ owners that want tax mitigation with no headaches.