We are providing accommodations with breathtaking views and elegant design.

The company pays their travel expenses, accommodations, etc.If you're looking to learn from other's mistakes rather than duplicate them,  well, put it this way: we have two South Korean brothers in the suburban Chicago community (which of "the gurus" even has  local communities?)

A use whichmeets the definition of “transient accommodation use” is not considered a residential use for the purposes of this chapter.

In a reverse exchange, the QI sets up a holding company, usually an LLC, to act as the EAT (exchange accommodating title holder).  

@Stinson McElhinney There are lots of items to consider prior to selling or doing a 1031 exchange and it would be very important to speak to a real estate professional along with your CPA and an exchange accommodator before making any moves....some items to consider, Sec 121 tax exclusion allows for potential partial exclusion if you don't meet the 2 year mark.....a partial exclusion of gain if the sale is due to a change in place of employment, health, or, to the extent provided in regulations, unforeseen circumstances..

In a reverse exchange the Qualified Intermediary (that's the role we fill) takes title to the new property in a special purpose entity called the Exchange Accommodating Title Holder. 

This can cashflow well, it just needs to be in the right location, and your accommodations need to be nice if you want to get higher rents. 

The QI should have been able to create an EAT (exchange accommodating title holder) and with a bit of hurry made it work even though there is a lot of components to put in place - definitely an all hands on deck kind of thing.  

We pitched in and made it happen, but we saw first hand that it was not really conducive to accommodating their changing mobility needs. 

We ran into some snags when we had to change out the main meter at the curb and enlarge the water main to the building to accommodate the new bathrooms - this delayed us a bit because water company had to do this install and we had no running water at the property to be able to test out the newly installed plumbing and get our final, otherwise construction went smoothly.