Premium for replacement cost is cost prohibitive.

. :) Deed restrictions (restrictive covenants) on a single family house in a planned community are not  uncommon around the country There are many in Florida Here is an example from one in Las Vegas.There might be some type of law from@Bill Gulley state http://www.city-data.com/forum/las-vegas/1184728-r...Here are the facts: Single family property purchased in 2005, subject to a mortgage of about $220K;At time of purchase, the seller (Developer) encumbered the Property with a Deed restriction prohibiting any renting of the Property.

It is prohibitively expensive for landlords to install individual units.The weird thing is when tenants realize that they are ALL paying for usage, somehow the usage drops.  

I live in LA and own a rent house in Austin, and and Airbnb in SA, for the same reasons you're looking to do it in PS--LA is prohibitively expensive.  

One side benefit to the Solo401 is that tax wise is has so advantages if you are leveraging your funds over a SDIRA.One other option is to partner with a non prohibited party, either with them using cash or retirement funds.Back to the question of doing a 1031 Exchange within a Retirement account - @Dmitriy Fomichenko or @Brian Eastman , would there be any 'long term benefit' to doing that?

@Martin SennThe following may assist you decide whether to go the IRA or IRA LLC or Solo 401k route:The Self-Directed IRA and Solo 401k Similarities Both were created by congress for individuals to save for retirement;Both may be invested in alternative investments such as real estate, precious metals tax liens, promissory notes, private company shares, and stocks and mutual funds, to name a few;Both allow for Roth contributions;Both are subject to prohibited transaction rules;Both are subject to federal taxes at time of distribution;Both allow for checkbook control for placing alternative investments;Both may be invested in annuities;Both are protected from creditors;Both allow for nondeductible contributions;Both are prohibited from investing in assets listed under I.R.C. 408(m); andThe Self-Directed IRA and Solo 401k DifferencesIn order to open a solo 401k, self-employment, whether on a part-time or full-time basis, is required;To open a self-directed IRA, self-employment income is not required;In order to gain IRA checkbook control over the self-directed IRA funds, a limited liability company (IRA LLC) must be used;The solo 401k allows for checkbook control from the onset;The solo 401k allows for personal loan known as a solo 401k loan;It is prohibited to borrow from your IRA;The Solo 401k may be invested in life insurance;The self-directed IRA may not be invested in life insurance;The solo 401k allow for high contribution amounts (for 2016; the solo 401k contribution limit is $53,000, whereas the self-directed IRA contribution limit is $5,500);The solo 401k business owner can serve as trustee of the solo 401k;The self-directed IRA participant/owner may not serve as trustee or custodian of her IRA; instead, a trust company or bank institution is required;When distributions commence from the solo 401k a mandatory 20% of federal taxes must be withheld from each distribution and submitted electronically to the IRS by the 15th of the month following the date of each distribution;Rollovers and/or transfers from IRAs or qualified plans (e.g., former employer 401k) to a solo 401k are not reported on Form 5498, but rather on Form 5500-EZ, but only if the air market value of the solo 401k exceeds $250K as of the end of the plan year (generally 12/31);When funds are rolled over or transferred from an IRA or 401k to a self-directed IRA, the amount deposited into the self-directed IRA is reported on Form 5498 by the receiving self-directed IRA custodian by May of the year following the rollover/transfer.Rollovers (provided the 60 day rollover window is satisfied) from an IRA to a Solo 401k or self-directed IRA are reported on lines 15a and 15b of Form 1040;Pre-tax IRA contributions on reported on line 32 of Form 1040;Pre-tax solo 401k contributions are reported on line 28 of Form 1040;Roth solo 401k funds are subject to RMDs;A Roth 401k may be transferred to a Roth IRA (Note that from a planning perspective, it may be advantageous to transfer Roth Solo 401k funds to a Roth IRA before turning age 70 ½ in order to escape the Roth RMD requirement applicable to Roth 401k contributions including Roth Solo 401k contributions and earnings.)

If this is a condominium townhouse there may well be regulations prohibiting installation of satellite dishes on the structure.

There are some area of the country where it might make sense due to seasonal issues (like not be able to build in the winter).Additionally, based on my experience, the 4 plex is going to be cost prohibitive due to the different building code that 3+ units have to comply with.Is there a high demand for 1/1 unit in your area, outside of traditional apartment complexes? 

Christian mentioned that US labor and product costs are prohibitive compared to Asian solutions.

The church is not prohibited from making a profit, they will just have to pay tax on it.