You are making this way too complicated. 

Imran,Your question is complicated, but the short answer is "not as you describe it."   

However, if you intend to buy a lot and then use the proceeds from your prior sale to build the new property after you've taken title, then you need what's called a "construction" or "build-to-suit" 1031 exchange, which is more costly and complicated.  

One thing i will add to this thought process.. is multi million dollar homes generally are much more complicated and time consuming to market and to get to the finish line..

It does get complicated when you buy the seller out because even on a cash out refinance you will always be maxed at 80% cash out for a primary and 75% for an investment.

It’s a complicated property.

I believe their strategy and reasoning behind asset protection is good, but their team's execution of the plan has been long and complicated.

I'm personally a fan of C-corporations, though they are also complicated.

So effectively I would gain a 10% tax advantage by paying my LLC to property manage vs just taking the profits as personal income.I'm sure things get much more complicated than this, but could anyone confirm is this basically the gist of it?

There are some complicated rules regarding the circumstances in which you can qualify for the STR deduction against your W-2 income.