By doing so you indefinitely defer all tax and depreciation recapture. 

That's at least something, in many areas of the country it's enough to meet your basic needs (if one lived frugally) and you could do it indefinitely.

then 1031 and the tax will be deferred indefinitely.  

I am currently in my second rotation on an "indefinite contract".

can they stay MTM indefinitely given Oakland's tenant protection laws?).

I have seen banks, specifically HUD putting a restriction for a certain periods if you said you will be buying it as a personal residency property, but you intent to rent it , but no from a seller or from indefinitely time.

Rents in the area are $2000-$2200Additionally we have saved up 6 months of monthly rental expenses in a "rental fund" to get us over any vacancies and unexpected issues (~ $9300) and plan on adding a $300 monthly maintenance reserve from the rental income to the fund on an indefinite basis. 

You'd be able to buy fixer uppers for cash/hard money, then reuse that money/lender indefinitely.

We can continue to operate at a loss indefinitely but that obviously isn't the goal.

By transferring the property or asset to the trust or completing an installment sale, the seller can defer taxes on the capital gains indefinitely and enjoy potential investment growth on the entire sale proceeds.