However, I think a long term buy and hold strategy would outlast the temporary highs and lows.

What I am wondering is that it *sounds* to me like an owner who is wanting to exchange up can either put their physical property or the funds from the relinquished property into a 'temporary partnership'.

wait, you didn't list the prosthe risks you mentioned are correct, but can be mitigated and not nearly as bad as you said. you "risking it all" isn't really correct, market drops are temporary, you can get your money back out (and more) using BRRRonly focusing on the downside is a hard way to get ahead.

It seems like there could be potential to use this kind of temporary rental structure to make things like a slow moving flip be 1031 eligible, potentially saving a lot of money over time.

If it is in a high traffic area maybe you can rent it out to someone to post a Food Truck or something temporary like that.

We currently rent out our home in Mascoutah, IL after I accepted a temporary position overseas, but didn't have the knowledge that I do now and it definitely doesn't cash-flow.

As I am sure you know the treatment of Quit Claim is trending away from the "No Problem " +-5yrs ago to now "at least a temporary problem"   So who knows where it will be in the future.

You also need to remember that even though you get the 'temporary' benefit of depreciation, you will have to pay that back, at a 25% rate, some day unless you do indeed pass on to heirs down the road. 

.- if you can get a long term person in, ie: someone looking for a temporary place because they are moving or doing travel nursing etc, you will make more money, and save a lot of time doing clean up/turn over.- provide toiletries, menus from local restaurants for take out, some snacks etc.- place must be very clean

It’d be a temporary inconvenience for the other tenants, but you don’t want to allow water to run.