I 100% endorse adding in the escrows for taxes and insurance to set the buyer/borrower up for success. 

Since the trust is a disregarded entity, the benefit is bypassing  probate, not tax issues or liability concerns. 

To defer all tax you must purchase in total at least as much as your net sale.

Despite the equity We also want to take advantage of tax advantages we did stay in the property for 2 years !  

Remember you are exempt from excise franchise tax if you file an exempt form.This post does not create a CPA-Client relationship.

Lastly, if the tenant does become delinquent and we have to file a claim with Rhino Insurance to collect their deposit, we're adding to the financial woes of that tenant and putting them into an even worse financial position when they wouldn't have qualified in the first place.Thoughts?

Plus it's ordinary income so it's a nice tax hit.

If 1031 is to be implemented it must be done on the property level.2. 1031 generally does not apply to IRAs since they are tax-exempt. 3.

However, there is no specific holding period contained in the tax code or regulations and there is no "safe harbor." 

I do intend to stay close to home - but home provides only annual opportunities and I’m looking for year round possibilities with tax deed properties.