Actually, you cannot have your current accountant be your intermediary.

But it is the job of the Qualified Intermediary he selects to guide him through the potential mine fields.  

I ask because my reserve fund will need to be beefed up to cover the new property expenses and its about half of what I am comfortable with.Any tips on what I should be looking for when I select a Qualified Intermediary?

But there's nothing wrong with paying a broker, who might be a true intermediary, a point or two to setup your loan and interface with the lender.

This does not always equate to a bad arrangement being that some agents working in intermediary statuses are quite honest.

You could try contacting some of the qualified intermediaries for 1031's, but investors aren't going to buy a dog, and lose money trying to save money.

Of course, nothing is quite that simple and any basis adjustments or debt that you carry on the current prop will make things a bit more complicated, but that's where a Qualified Intermediary comes in.Truthfully, you are cash flowing nicely on the current prop, and could likely afford a good PM to take the stress out of the investment and still net a good amount.

Would I essentially just transfer 400k to the intermediary and pay the bulk sales tax due at closing out of the 100k boot?

But if you find the perfect property you want to end an exchange first your intermediary can set up a holding entity (the exchange accommodating title holder or EAT) which takes title to that property and parks it until you sell your old property.  

The IRS knows that sometimes investments don't perform, or life happens and people need that capital to survive on, but if you try to execute 1031s on a property you've owned for like 60 days without ever trying to rent it out, or you try to do multiple exchanges with iffy holding periods, the IRS will likely not smile upon you.Not knowing your specific circumstances, I'd say hang on for another month or two to be on the safe side and make sure you can show your intent (maybe through emails or forum posts from when you purchased it discussing it's long-term potential) in case the IRS wants to see documentation.Of course, the MOST important thing you can do is get the help of a good Qualified Intermediary.