@Fan Bi, I guess not :)  But don't worry, the location of your QI is not a factor that should prohibit you from completing a 1031 exchange. 

@David Smit WA State law prohibits use of security for anything but damage (i.e. can't use it for unpaid rent).

What makes it qualify is your intent to hold for investment purposes.There is no statutory prohibition that you cannot change your intent. 

If it's not prohibited in the lease, you can do it, but for $200 a month, it may be more of a headache than it's worth.

According to the IRS rules you are considered to be disqualified person to your IRA and as such are prohibited from providing any services to your IRA:https://www.irs.gov/retirement-plans/plan-particip...If you had a long term tenant you probably could get away without using third party property manager, however vacation rental will have high turnover, which will require significant involvement from you, and would be considered as you providing service to your IRA, which is prohibited. 

Or would this be considered a "prohibited transaction" in the eyes of the IRS?

If your lease doesn't prohibit smoking, wear and tear is a stretch.

Any switch to sub metering for water is extremely expensive and cost prohibitive to the association (or individual owners).

@Ryan GoffIRS rules prohibit any direct or indirect transactions between you and your IRA. 

§ 5310 "Assurance money" prohibited.