From what I have read, I don't think the facts merit an accusation of race/ethnicity discrimination though.

I don't remember much about it but i think there is def merit to the concept of balance ( might be way off base on that movie.  

While this strategy may have asset protection merit, it no longer is required to use rental income on or after November 30th (unless Freddie decides to change their dates again).

But please, each deal should stand up on its own merits, at civilian investor interest rates!...

You're going to have some pain to get through this, but might (or might not) have a better situation down the road.You could try getting him into counseling, or maybe rehab if the situation merits. 

Each has it strategy and merits.

Of course you'll have to analyze the merits of each investor and their particular deals with the same rigor as your own deals but the payoffs could definitely justify the risks.

It really comes back to: treat every potential buy on its own merits; OFFER, then move on!

Each case is looked at upon it's own merits to see whether your intent in doing the 1031 was to buy investment property and then you changed your mind.  

Does it have its merit ?