I haven't pulled the trigger yet - still looking at different paths. 

You may wish to confirm that the new 401k provider will handle the ongoing compliance support such as any required 5500 filing (e.g. 5500-ez for a one-participant plan with assets in excess of $250,000), any required tax reporting (e.g. 1099-r in the event of a distribution or in-plan Roth conversion), mandatory plan updates and amendments, etc.4.

So this really isn't a 1031 question so much of a trigger of deemed sale question.  

These standards include a mandatory five-day grace period for rent payments, a 30-day notice for rent increases, and a 30-day notice for lease expirations.Borrowers must incorporate these standards within six months of closing a loan, and full compliance is required within 24 months.

And personally I cannot pull the trigger on a turnkey operator.

I would like to learn more before I pull the trigger in the next 6 months. 

I was thinking of OOS, but reading your post I think It would be to much risk and have decided if I'm going to pull the trigger on something like this, I would be moving to that location.

Any one of these could and regularly trigger a special assessment.

One more tip – people remember stories that trigger their emotions.

I recommend consulting with a cost segregation specialist to ensure accurate classification and compliance.