There aren’t many residential development companies operating at this level, which reduces competition and risk.

Then create a maintenance account.  

Not affiliated with either company** 

Accountability is key!

you are going up against people and companies that spend thousands or even tens of thousands of dollars a month in marketing. 

Remember to account for potential surprises.

If you are syndicating or partnering with other investors to fund a Sponsor's deal and you are a company doing this (LLC, partnership) then get a PPM attorney and file with the SEC. 506B is easiest but if it is really risky...then 506C is best. 

There are some accountants out there who say that the very act of doing a 1031 exchange is an attempt to avoid tax and so a 1031 purchase from a related party is a non-starter. 

A few that sell and manage, or know management companies.  

However, after he saw the quantity of ADU applications come across his desk to plan check he went out and started his own consulting company.