Sometimes referred to as a "straw man".The tax code does not provide a timeline that would "scrub" the transaction, so it would be subject to the interpretation of the IRS in the event of an audit.  

@Scott McCaddenThanks for sharing, Scott.This is an extremely interesting case, because many tax professionals, myself included, would disagree with the Court's interpretation of whether their business has commenced.

Several ways to screen other than some arbitrary "keyword" interpretation to determine a buyers qualifications

This can be easily interpreted as vindictive in an appeals process plus you will have to proof damage.

@Terry Landon, if police officers were allowed to read and interpret leases, why would anyone need to go to court for an eviction.

@Ryan Pettit if I interpret what you have shared correctly, there is only one vacant space? 

The interpretation can be that you only refinanced to get at the profit ahead of a sale and 1031. 

However, another interpretation is that, you are simply creating a more accurate identification of the property that you purchased to hold for productive use as evidenced by your actual use and the two rentors.  

If you go back to your readings, I bet they say that the "proceeds" of the sale must be reinvested (which you may have interpreted as profit).

This is still iffy, depending on how you interpret the definition of a security but it's at least moving in the right direction.