so if you fail they don't have to foreclose? 

It's common for beginners to fail to calculate their own time.

This is why mom and pop I like for them to have some net worth so if business is failing and say remaining lease has 300k on it but they are worth 750k with personal guarantee then I have seen before early termination with the lease for 50k.

The reason you hear so many horror stories about PM is because Landlords fail to research and screen.

If they fail to perform, you don't pay them but you still have the rent.

Uggh, I just when through this a couple of months ago, and even though the tenants were able to shower in their brother's apt downstairs while I gutted the failed tile tub surround and retiled, it was still a nightmare.

I suppose I failed to do this in this case and now must have a corrective discussion. 

It's better to rent 10% below market to an excellent tenant than to rent at market to a crappy tenant that adds pets or roommates and fails to maintain the home.

From what I have read, If I don't close of any of the 3, it would be a failed exchange and I would get taxed on the money sitting with the 1031 company, is this true?  

I have to say she is a pro at keeping deals together.. very few of her deals ever sale fail but she loves that end of it..