I'm trying to avoid having to use a PM for cashflow purposes yet the only LAIC I can find will only do it if the property has a PM. 

The DST gives you this option, while 1031 does not.2) Direct up to 80% of the funds to an LLC and partner with the trust for a business purpose such as purchasing investment real estate, loan business, buy into a business or develop investment RE at your own timing (all capital gains tax deferred, without having to follow any timing guidelines.)3) The DST can save a failed 1031 exchange.

So every month we have a member of our team reach out to investors to check in and see if they have questions, wish them a happy anniversary for investing and just check in…..Over the past few months we have had multiple investors panic on calls noting “please don’t tell me my investment is gone” (NOTE as we mention above not purpose of call), as several have noted they cannot take another complete loss on investment.

Hi Jonathan,I set up my SDIRA years ago for the purpose of purchasing notes and have since used it for lending and doing land trust investments.

Is that on purpose?

You can also partner up as well/have multiple people on the loan for down payment purposes!

You said: "This seems like an odd strategy - purposefully invest in an asset that loses value, with the hope that it will regain value to save a little on taxes... 

If so, what’s the purpose of that holding company, assuming anonymity is not a priority?

It will be a byproduct of investing, not the primary purpose.

To qualify for active status on short-term rentals for tax purposes , you need to meet the IRS’s material participation requirements.