Family trust, no W2, have foreign income, want 1031 exchange

[Rick Lee]

Hey everyone! 

Here in southern California,

Los Angeles 

I'm a super noob and I hope I don't offend anyone for asking so much yet not providing anything of value! If there's anything I can do for anyone in Los Angeles please let me know. 

Here's my problem:

My moms been house hacking for a couple years but recently we've gotten complaints from neighbors about our tenants(roommates) and how we are not a single "last name" family and suspected of doing business rentals. 

This all started out when we had some issues surviving 2008 and we converted the garage and the downstairs living room into 4 bedrooms to rent out which albeit illegal has gotten us this far. I know this is illegal and we had issues before with insurance companies canceling our policies etc. on top of that we may even get a large fine and be forced to tear it down and return it to a proper garage.

Recent increases in taxes have also put our house in negative cash flow. With this plethora of problems I wanted to see if I can do a 1031 for a proper multi family and house hack.

With all these factors coming together I wanted to fix it all and here's how I want to solve this. It is a bit complicated:

1. This house is under a family trust with my father who recently is on bad terms with my mother. They are the primary trustees who have a say on the trust. My brother sister and I are just trustees with no say(I'm not sure if that's even a law term, I'm sorry I'm bad at this)

2. I want my mom to do a 1031 exchange for a multifamily 4plex however she doesn't have any income and thus no W2. No banks would consider giving her a mortgage for the exchange.

3. I would like to be the primary trustee however I have a foreign income as I'm a pilot working internationally and my salary is from a foreign company overseas.

So in essence, how would we go about doing this?

Would I have to be a primary trustee as I have income? 

How would I get a W2 or equivalent for the banks to lend to me?

Or would it be easier to just dissolve the trust altogether and have her sell me the property on the premises that I get approval from banks that I can get a mortgage(the banks accepting my foreign income as legitimate and stable)?

I think I just asked like a ton of questions and I know this is super messy.

If you awesome real estate investors or real estate lawyers know anyone who can help or give me some advice, I would be eternally grateful!

Also if you know any good real estate CPAs and lawyers who are knowledgeable about 1031 exchanges. That would also help a lot as well!

Thanks again for your time!

Rick