Why did the former owner not execute this strategy? 

I have experience managing this on multifamily properties as both an owner and a lender.

As a mortgage broker, I've got a 100% financing down payment assistance grant that allows for owner occupants to purchase a duplex.

This initial conversation before the owner has a property can be very educational especially if the owner is out of state or has never been to our city.

NO PRIMARY RESIDENCES, NON-OWNER OCCUPIED ONLY, BUSINESS AND COMMERCIAL USE ONLY.

Gamal is the owner.

In your case, transferring the property from a revocable trust to an LLC where you and your wife are the owners should not affect the 1031 exchange, provided the LLC is a disregarded entity for tax purposes . 

In the last 18 months various states have instituted new rules, regulations or laws related to (1) need for licensure to wholesale (2) restrictions on marketing of a property in which you do not have ownership and (3) disclosure requirements when dealing with a homeowner that makes it clear to the homeowner that the contact signed with the wholesaler is not a definitive “sales” contract, therefore making it less likely home owners will sign4.

The units are all sold so the owners make up the HOA, but without a board the only person calling meetings right now is the Management company. 

You can find qualified buyers that are small business owners, tradesmen, etc just have someone qualified to do prop underwriting be fore you sign the agreement.