Once the 1031 is complete the LLC dissolves and again the property is distributed to the former members, including the properties just purchased in the 1031 exchange (which each member probably picked out for themselves).This method solved the feared "held for investment" issue. 

Purchase price: $530,000 Cash invested: $100,000 My journey into short-term rentals began after years of investing in long-term properties, but it was a podcast that opened my eyes to the incredible potential returns of STRs.

The only additional thing that needs to happen is make sure appraiser makes note of why the value increase in as is vs previous purchase price.

That ensures you don't spend it on other things and know exactly how much you have to spend on the next purchase.

So pretty good equity position within a year plus cash flowing well based on a $325k purchase price.

The best I've seen for STRs is 80LTV on purchase and 75LTV on cash outs. 

Typically starting with a smaller rehab budget of $50K or less (maybe a max of $75K) and avoiding a 1 to 1(or higher) ratio of purchase to rehab costs is recommend when you are first starting out. 

I may at somepoint consider utilities like energy and water, and how I can become more self sustaining, purchasing stocks is one way I can make my money back, or obtain ownership in what I am spending on in terms of utilities. 

This will be my first home purchase, and I am aiming to invest in multi-family properties.What should I be aware of when purchasing a multi-family property?

The substitute of collateral was more of a scenario where you sold for $155K, and instead of paying off the $88K loan in your scenario, those funds stayed at the title company and were used on a cash purchase happening nearby in date.