It's a little complicated to write out so I would like to schedule a call to be able to explain my situation. 

Construction loans are available in Mexico but its a complicated and very expensive process.As a developer, I find and buy the land, plan and obtain all the permits, recruit a general contractor, market and sell the condos to investors who either use them for part time living or list them on AirBanB. 

Hey there, It can be a complicated question.

Move into the new property, rent out your space in the original property.It's really not complicated.

The LLC question was Bill's assumption, I didn't bring that LLC structure in my initial posting because I didn't want to complicate things...but you both are right, it is part of the question (although not from, or not only from the 1031 exchange perspective): what is the best structure to hold these properties?

Or is there something I'm missing from the complicated section 8 process. 

It is admittedly a complicated system but can be an effective asset protection tool if used effectively.

Problem solved.It isn't like a fridge or washer take a complicated hook-up....just plug 'em in.

To be sure, we can complicate the argument by introducing the tax advantages that real estate investment such as depreciation etc…but we won’t go there now.so, if we assume that the appreciation of real estate in general is going to be negligible over the next several years, as a prudent investor you should look for properties that can cash flow at the minimum rate of return equivalent to or better than the rate the bank would give you on your money. 

Are there any building regulations for quadplex that are more complicated compared to duplexes?