Tax Deferral: Properly executed, a 1031 exchange defers capital gains tax until you sell the new property.Have you ever done a 1031 exchange?

They plan to sublease to professionals like traveling nurses (2-5 months) and short-term families (we're near Disneyland).

I dont suspect any intentional foul play here, apparently he is a doctor and most likely is in control of the corporation but I need to make sure they arent trying to execute a prohibited transaction.  

And many would say thankfully but let's stick to the facts.Tulum is an artificial creation decided and executed by the Mexican government, as part of its masterplan for the Riviera Maya.

Today I was approached by someone who is offering me around $1800-1900/month to rent the property from me to run a short term / medium term rental out of it, primarily for traveling nurses or other business people.

Evidence may include:two months consecutive bank statements or electronic transfers of rental payments for existing lease agreements, orcopies of the security deposit and first month's rent check with proof of deposit for newly executed agreements.See Treatment of the Income (or Loss) below for further instructions.

And then we also get families visiting college students (we have 3 large ones like Duke), and tons of travelling nurses (our medical industry is large here).

The STR rooming house would work, in theory, as a budget option for traveling going through town.

Like business travel/meals, etc?

I travel there quite often to visit friends.