If the former, note per Union City Rent Stabilization ordinance (https://ecode360.com/15397000 is a slightly outdated version), "the terms of this chapter apply to individual dwelling units within a building, including condominium or cooperative units in the process of being converted, or having been converted".

Your 1031 will ultimately be only as good as the individuals directly assigned to your exchange.  

Renting an individual room is all but guaranteed to be cheaper than them renting a 1/1 apartment alone.

Giving away the place cheap only creates more work for yourself screening lower income individuals, and attracts scammers.

Since they can't do each property individually, they use comparable sales to make broad generalizations to determine percent changes.

Most reverse exchanges are done with cash from the client or a private loan of some sort from an individual or a portfolio bank.When your old property sells you will have that cash in your account to purchase the new property. 

While I agree the rent by the room strategy can be great if you know how to manage it well, from a lending perspective, a lot of 30 year DSCR note buyers won't allow properties with individual room leases, so it could make refinancing more challenging. 

@Sufyan Minhasgoing to depend on the rules in individual buildings

Certain expenses are all lumped together for the sake of the P&L like insurance and taxes and others like repairs and maintenance can be viewed collectively or by individual property.

The goal is to expand my network with likeminded individuals in the same market.