This can be done either directly with flippers or through intermediary companies that connect flippers with lenders (for a fee of course, but they verify the info for you)b) NNN leases @Joel Owens is your guy for it. c) invest in syndications (btw, this does not entail multifamily only. it can be any asset class: MFH, SFH, storage, hotel, etc...

Between their CPAs and a good third party intermediary, they get the information they need on how to navigate the California reporting requirements.  

The Sec 121 would allow you to take the gain tax-free, and the 1031 will allow you to roll the remaining value into new investments, also tax-free.In any scenario, you'll need to talk to a CPA, a Qualified Intermediary, or both, but the point is you have options here.If you want to learn a bit more about the rules and regs for the 121 and 1031, and how to combine them, check out these articles:https://www.1031exchange.com/section-121/https://apiexchange.com/what-is-a-1031-exchange/http://www.exeter1031.com/article_overview_1031_12...https://www.biggerpockets.com/forums/104/topics/40...

I have never had a situation where a realtor tried to act as an intermediary for an applicant.

You must use a qualified intermediary during the process.

If the agent is acting as an intermediary, he/she will also likely do her best to ensure his/her buyer produces the highest bid so that buyer will secure the property.

In order to do a 1031 you must use the services of a qualified intermediary. 

And you must use the services of a qualified intermediary to complete the exchange and they must in place prior to the sale of your old property. 

What you're thinking about is commonly called a diversification exchange.Just remember that you must follow a process in addition to those 180 days  that includes a qualified intermediary who must be in place prior to the closing of that sale. 

Most 1031 intermediaries can help a little and mine intermediary is also a cpa.