Basically the IRS doesn't even see that the property is in an LLC since it would be reported exactly the same way on our personal taxes.This all changes if you own or plan to own one of the properties with someone other than your spouse.Again, I suggest you speak with your CPA and your 1031 Qualifies Intermediary to get the professionals guidance since they are the one that will be handling your tax paperwork.

I can't qualify for a loan until I am two years in the agent business so this is why I plan to leverage in this way.

Unless, they are asking you to pay for the QI (qualified intermediary) fees which would be very rare.

I can't qualify for a bank loan until I am two years in the agent business so this is why I plan to leverage in this way.

I can't qualify for a bank loan until I am two years in the agent business so this is why I plan to leverage in this way.

After talking to a couple of lenders, I'm not able to qualify for conventional because they require 20% down on 3-4 unit properties.

Other factors that could effect what program you can qualify for is your Debt to Income and credit score.

I am not able to qualify for a traditional loan due to my lack of job history.

Luckily we have a new (much better qualified) tenant in the rental now.  

It all depends on your goals and what you can qualify for :)