1031 TIC into property already owned

[Nick Frey]

Hey BP crowd, I've always been a reader but this is my first post.  I'm always in awe of the cumulative experience and intelligence found on this site, so thanks in advance for thoughts and input!

Quick background: I'm a member of 10 LLCs, each of which holds a single asset, and I'm the sole member of the LLC which manages these properties. Each holding LLC has between two and three members, and so I'm between 25% and 50% owner of these except for one that is 99% me.

I'm trying to re-lever. I'm 34, in this for another 10-15 years, and while I'm slightly concerned about current valuations, I've got a "good" problem with my LTV. It's down around 35% based on conservative valuations and I want to get up to around 75%, which means doubling assets under control (mostly going more into passive NNN and MFH options versus active management of SFR).

Since I'm not a strong buyer with leverage in this market (I'm seeing all-cash $100k over-ask no contingencies bidding wars right and left), I'm looking instead to buy partners out of existing ownership of these LLCs. They would 1031 into a DST or something bland and safe until their tax situation is better, divorce is over, etc. I'm still in business with them on other properties, known for 10+ years, good friends, etc. I need to carefully consider their situation in my thought process.

QUESTION: I am selling a property (call it Property A) and need a 1031 outlet. If I am a member of another LLC which owns a single asset (call it Property B), and there are two other members, can we split the Property B LLC into a TIC and can I then 1031 into their ownership with the proceeds from the sale of Property A? I'm concerned about how many hiccups there can be from the complexity here as well as the raw numbers, leverage, boot, etc. But I don't want to do further brain damage going down this path if there is some absolute constraint I'd be breaking within the 1031 rules.

I think, if this worked out, I'd essentially be a TIC with myself in a single asset...I'm not averse to this creativity and legwork, and there is a lot of money at stake so it's worth the effort. I just don't want to raise enough red flags to get an audit and have my life upside down, as I have enough work to do already.

Thanks everyone, and I hope this makes sense!!