The standard 1031 Exchange rules and timing all apply, including the use of a Qualified Intermediary, 45 calendar day identification period and the 180 calendar day exchange period.  

As a lender we clearly state in our term sheet and Letter of Intent the relationship of the parties - and many brokers protest or ask us to "hide" the fact that they are intermediaries - we of course decline.The truth is that while it is possible to gain a SLIGHTLY better rate, or terms for any given deal risk, there is no  money available for tremendously cheaper rates than is customary for the type of deal, borrower and risk.So, if you are trying to finance an industrial building, with a non credit tenant in place, and you are looking for 65% LTV, and you have decent credit, and money is available at 12-14% with 3-5 points, an offer of 7% interest and 1 point is totally bogus.

You can trade down in value and/or pull cash out, but the amount that you trade down by or cash you pull out will all be applied toward you taxable gain. 1031 Exchange fees vary from Qualified Intermediary to Qualified Intermediary.  

You must use the services of a Qualified Intermediary who handles the 1031 portion of the transactions.  

I was thinking about working in-person directly with the buyer to find what they are looking for, acting as an intermediary between the real estate agent and the buyer.Think house hunters (like on TV) but actually listening to the buyer, and facilitating the search.

House hacking is a minimal 2 year venture, do the math against the 5 year cycle in real estate and make a well thought out plan, including a reputable Qualified Intermediary .BTW: I think tenants acts pretty much the same with the owner there or not.

IMO no need to place another intermediary between you and the note buyer.

You can demonstrate your intent through numerous means such as: Emails and other correspondence between you and your attorney, accountant, realtor, qualified intermediary and other advisors; and, Reporting the property as rental/investment property on your income tax returns; and, Reporting the property as rental/investment property on your financial statements; and, Reporting the property as rental/investment property on any loan applications or documents; and, Keeping really good accounting records documenting your rental or business use activities; and,Limiting or eliminating personal use of the property; and,Actually holding the property for rental, investment or business use as long as possible.

You must involve a qualified intermediary prior to closing that sale.  

They will source your downpayment through your qualified intermediary and exchange account.