Currently, the back house is not permitted as a living area but I believe as a "Carriage house".

As a full service design-build firm, we are capable of so much more (full custom new builds and large scale renovations and additions). 

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.

Sounds good, will send you some feedback on a couple reverse 1031 exchange providers that our customers work with. 

Everybody I have called said no except for one company that only does portfolios with established customers

I understand each city/county may have their own permitting requirements, fees, regulations, etc. but I'm wondering how people are making any return on their investment if it maxes out at 90 day rental.

If not we replace and charge the customer for time and materials.  

This applies in most areas of life, but if someone is simply agreeing with you, dropping PM fees down a percentage or offering discounts up front and sounds a bit desperate, they could be experiencing high turnover and poor customer retention.

One year later, still no permits, and just raised the price of our home by 20%!

Me not being an accounting guru....depreciation was a bit tricky to set up, however they have a few guides, customer support may walk you through it and searching via google will help you put the correct entries.