There are plenty of statutes in states like Virginia such as Consumer Protection and Uniform Trade (fraud) statutes that would label such a structure as a clear and obvious attempt to avoid liability.

After getting my receipts, I scan them into PDFs and organize them into property folders.Example folder structure:Property - 123 Main St-- Applications (keep applications on file in electronic format on advice from attorney -- two years is the statute of limitations for discrimination suits)-- Contractors and Receipts (contains scans of contractor invoices and scanned receipts)-- Insurance (contains policy declaration pages, invoices, etc.)-- Pictures (I like before/after pictures, pictures I use for marketing the rentals)-- Purchase (closing documents, settlement statement)-- Taxes (property tax bills and receipts)-- Tenants (information on tenants such as leases, scanned copies of payments)-- Utilities (utility bills for gas, electric, water, sewer)

@Lane Kawaoka, Evasion is a pretty strong word for a 100 year old statute with specific regulatory practices, Specific statutes, statutory safe harbors and thousands of pages of case law. 

Since 1031 is a federal statute it applies to at least federal tax in every state.  

The Seller can repossess without a formal foreclosure if there is less than 60 payments and under 20% down payment plus monthly payments (total equity)IDEA - buy on Land Contract and rent out or lease option.Here is the statute..

However, in Texas by statute you CANNOT get a HELOC on a property that is not your principle residence. 

This link shows that you are required to be licensed to appraise real estate in New Jersey:http://www.njconsumeraffairs.gov/reaFrom that page, you can navigate to the laws concerning appraisal in New Jersey, where you will find the definition of appraisal:http://www.njconsumeraffairs.gov/Statutes/realesta...Here is a link to a bulletin from your state addressing BPO's, and probably where you got the idea that so long as you state it is not an appraisal, it is not an appraisal:http://www.state.nj.us/dobi/bulletins/blt13_05.pdfHowever, if you read the entire text and not just the part that says you should place a disclaimer statement in a BPO, it clearly says a BPO is an appraisal.

There are eight activities that are considered brokerage activities. 475.42 says brokering without a license is a 3rd degree felony. 475.43, the presumptive statute, states that anyone offering one of the eight brokerage activities is PRESUMED to be brokering WITHOUT a license and it is up to that person to PROVE they are not.

Last line should be something like "The following charges will be assessed in the event that the repair is out of the scope of normal wear and tear to be determined by the property manager/maintenance team with accordance with the statute (blah blah blah code)."

There may be statutes against this, so check.The other issue is that a true escrow account has no interest paid, so tell the bank that it is an escrow account, they will inform you of how they must treat that account.Fines for violations of escrow accounts can be substantial, so investigate how they are handled in your state