What we're struggling to understand is how to underwrite/estimate the paper losses that a MF would produce and IF this strategy is worth it from an income/tax savings perspective.

The 1-4 unit buildings will have a larger buyer pool and maybe a larger price per unit as a result.

I don't have time to go to the law library or access to the legal data bases that have more detail than my searches have resulted.

There is no way a PML will wait that long to get all their money back if your property on produced 250 a month.

They should be using a net rental income analysis which would produce an income figure specific to each property based on your reporting on Sched E.

A perfect example from my day today, lol, I showed two homes, 2-bed A-frames next to one another, one was producing 120k, the other under 70k (Both with views).

Just want to clarify how you got there, to get to $12K you divided 1.2M by 100 lots (of which 60 has homes on them and producing rent, 40 lots are vacant). 

Seller requests buyers cooperation in such an exchange and agrees to hold Buyer harmless from any and all costs, claims, liabilities or delays in time resulting from such an exchange.

HI @Jyotin GautamShort answer is no in Texas Long answer according to the Texas Real Estate Commission " Under the amended rule, a broker could give an unlicensed person a gift of merchandise having a value of no more than $50 and this would not subject the unlicensed recipient to a charge of unauthorized practice as a broker, nor result in a violation of TREC rules by the broker giving the nominal gift."

This type of exchange provides investors with a way of increasing liquidity and diversification of their real estate investments, while deferring very costly capital gains and depreciation recapture taxes that may result from the sale of properties.