Also for various reasons our properties would not qualify du to requirements of being rented for a period of time or owned in a particular company and the requirement that the replacement property and the original property have to be identical owners. 

Downside is I can't verify their identity but I like that I know their last name upon inquiry.

Get with your CPA to see that you are on the right path in keeping records, doing it properly and avoiding tax fraud. 

My attorney says this is flirting with mortgage fraud.

That means getting a blanket loan on 3 properties still counts as 3, not 1.  3- Neglecting to report a loan on your credit application just because it does not show on your credit report is a fraud, it's a federal offense. 

A lot of newer investors don't realize this actually constitutes mortgage fraud which is a felony. 

One thing to keep in mind if you look at an FHA based loan such as as 203k, you may have an Identity of Interest conflict. 

In this case if each unit was identical then the rental portion would be $200K and a 1031 into that property would be fine.The down payment for the entire purchase can come from the 1031 proceeds. 

I know supposedly there is protection for the members/managing members unless there is fraud or a few other circumstances, but is it a 1 way street?  

Values in my area have gone up significantly and I'm curious if getting them re-appraised would allow me to depreciate more money over the next 27 years.The duplex I live in is worth atleast $300k now ($100k increase) and identical duplexes as my new one are being sold by my builder right now for $360k ($85k increase).