You will be shooting your self in the foot.Also, one audit because of an honest mistake that you did wrong can cost you more money than you save by not using an accountant.

I'd look at a CPA Audited tax returns and CPA Audited profit & loss before going forward.

No SSAE16-Soc II report on file, No E&O, no regulatory body governing them, no audited financials, no policies and procedures on NPPI data, etc.) they aren't going to be able to call an institutional lender/servicer/bank to buy a note.Our diatribe ends up being to the benefit of the OP.

BTW, make sure you are working with subs that have WC and GL, otherwise you will have to pick up their bill each year when your insurance company audits you.  

The situation is particularly bad in the city’s Northwest Core (Portland, Russell, Shawnee) and West Core (the remaining west Louisville neighborhoods), where more than half of all families earn 50 percent of the area median income (AMI), which is $71,500 for a family of four.According to the study, Louisville is more than 31,000 units (apartments, houses or other living quarters) short of being able to house all its low-income households.Part of this is due to the section 8 audit.

They told me that they could do it for me, but if I was audited, I would have to pay back taxes. 

Don't slam StateFarm lol you don't do an audit of your books during tax season?

Sit down, and do a thorough audit of your budget...you may be surprised how much "extra" investing capital you have.

So again, sell as yourself, sell as himself, buy as a disregarded LLC - this technically does not change the taxpayer and would be permissable for 1031 purposes.I always counsel you to make the deeds match as closely as possible simply because it avoids questions and fluke situations with inexperienced field agents in an audit. 

If I were to do that, then move to Utah, live in my place, and change my job to the graduate stipend I would be in trouble if I got audited.