Hi Chris, Yes, you can allocate or split your 1031 Exchange funds between two or more replacement properties. 

two things with Texas to be acutly aware of 1. and your on track is property tax's2. foundationsboth of those kill cash flow in Texas.. back into the numbers before you commit.put money aside for foundation repairs in your initial assessment.. if you never need them that's fine but when you do you have allocated for it up front.I have done about 15 flips in Texas last year or so and I would say 14 needed some sort of foundation work... tuck pointing etc.. it is what it is there. 

This fact finally made me realize the benefit of "pre-tax" saving/allocating and the power of passive income to use for future purchases.  

The FDIC takeover team may, for a time, receive and service all of the the payments, but they will allocate the funds according to which institution owns the notes.

Don't forget that you'll need to allocate a portion of the basis to land.  

It is used to recognize the gain and what is allocated to basis.  

Do they do all the allocating?

As I understand it, provided the 1031 is constructed such that the value of the guest house is allocated properly (i.e. 33% value assigned to guest house, balance to primary rez) then it would likely pass 1031 muster.Has anyone here been party to an exchange like this that dances in these grey areas?  

However, this seems to fly in the face of the tax code interest allocation (tracing) rules, as specified in Treasury Regulation 1.163-8T, and discussed in IRS pubs 535 & 550.

Draw schedules allocated to each property with inspection rights.