Everything was permitted correctly and done by the book. 

A crash will not happen due to inventory(local-regional factors at play), but you're pricing for general correction upon the eve of the slow and doomy Q4.

Correct.

If this were my unit I would change all of those white switch covers over to switch covers that we're very close to the paneling color so they blend in rather than stand out. 

I personally would wait for a correction before exchanging the money.Furthermore, if your real estate investments perform slightly more than real estate(1% to 5%), you can make up for the deferred return + penalties over a couple of years. 

If they continue to harass me via email (for payments I am not delinquent on) do I have any legal recourse against them and conventus. shellpoint is their agent so am I correct in believing they are responsible for the actions of shellpoint?

Let's say you want to stay conservative and only take 50% LTV, or $500,000.00, so that you don't have to sell anything in case of a market correction and there's a margin call.Step 2:  Purchase a rental property, all-cash, with that $500,000. 

Normally when you hear cap rates this high the expenses are not calculated correctly or certain expenses are omitted (no vacancy loss, no management fee, light on repairs etc). 

And  if we did a 1031 exchange later, I think I'm correct that having this cost basis established at today's market value vs 2001's cost + improvements would serve me better in the 1031.- The depreciation amount for my rental house would be maximized bc would be set at the selling price / current market value vs 2001 cost basis + improvements.

Here’s some insight into your questions and a recommendation to consult with a real estate lawyer for confirmation.LLC Structure and Liability:Your real estate lawyer is correct in advising you to separate each property into its own LLC.