@Bob StevensI was making an assumption that rent was not up to FMR For example in my county if you forget to ask for your yearly raises the dispersion becomes massive and eventually FMR changes can be drastic YoY for a new packet versus keeping an existing relationship.   

If you are used to the STR world, be aware that ff.com and the STR platforms behave very differently.

I anticipate this will become an issue with more frequent consequences because its never been easier to raise small amounts in volume, again thanks to social media. 

I am aware of certain zoning and regulations but am looking to further my knowledge before potentially venturing deeper.

Usually they haven’t raised rents in years.

These homes have long term tenants and will cash flow albeit slightly under $100 per unit if I don't raise rents.

Buyer is aware that seller intends to perform an IRS Section 1031 tax-deferred exchange .

Section 721 of the Internal Revenue code allows an investor to exchange property held for investment or business purposes for shares in a Real Estate Investment Trust (REIT) or an Operating Partnership without triggering a taxable event.Many investors are aware of a 1031 Exchange where an investor must find a replacement property to defer capital gains taxes on the property that was sold.

Raise the rent and get someone decent. 

There may also be costs associated with setting up the accounting for the shells, and preparing inital shell formation meeting minutes, etc...You will also need separate bank accounts, and a war chest of money to defend them if/when needed.Ask your asset protection attorney vs salesperson for a quote on the cost to defend, and how much it will cost to move title to the shells.Find out if moving the title creates a taxable event for you with the IRS re.