Just a note for you since I was just talking to a client about this: if you live in a high-income state or have privacy concerns and are living the digital nomad lifestyle, south Dakota has an interesting residency status program that can potentially save you guys 10s of thousands on income tax and have great anonymity. 

You can usually get the zoning destination with the property listing, then look that designation up in the town's zoning code to see which uses are allowed there.Basement habitation - There is a concern that limited egress, fire and CO are major risks to bedrooms and habitation in general of basements.

This is the most complicated piece because you are essentially the mortgage originator (which might run into licensing concerns depending on how many times you do this and your state), and you need to make sure the person who is buying is a good borrower.3) close with a title company or lawyer (state dependent) who knows how to deal with this type of transaction4) set up an account with a servicer to collect the money from the borrower (not required, but highly recommended from note buyers)5) collect payments

It seems that the cost of the money isn't that great of a concern if the numbers are making sense on the deal.

I would call the concerned parties and make sure you gather paper trail.. call the credit bureaus, they will give the advise you will need to get the flag removed

My concerns with selecting a servicer are the following: customer service, access to funds, access to education materials so I can learn how to stay away from prohibited transactions.

@Noah BaconI am not really concerned about either housing plan as both parties have been talking about building more affordable housing for decades but it boils down to a local level and the NIMBY groupsIt will be status quo like it has been since I can remember

And, government bureaucrats go along with it either out of sheer stupidity and ignorance or, far more concerning, out of ulterior motives. 

It's a very common concern that the other side of your transactions might try to take advantage of if they know you are doing a 1031 exchange. 

Is this a realistic concern?