This was an exercise for me to see where I can improve my approach.

You have title insurance and that depends on the price of property and whether you get enhanced or not.  

You have an amazingly valuable property here that could continue cashflow easily with minimal contact from you if you hired a good PM (or had your son do it as a learning exercise).

I eat healthy and exercise fanatically every day.2.

When you think of your kids and what you could leave behind, $1.3m that will continue to appreciate is a helluva lot of money.This exercise has prompted us to find a way to combine both goals.

I see a lot of folks successful and enhance their chances w/properties in their own local.  

There are a variety of ways to search for and then tie up suitable replacement property, including making an offer to acquire the replacement property with a contingency that you must sell your relinquished property, placing a lease/option on the replacement property so that you have it under your control and can choose when to exercise the option and then close on the purchase, or structuring a Reverse 1031 Exchange transaction.Regular Forward 1031 Exchange transactions should only cost between $700 and $1200 total if there is one sale and one purchase involved.

This little exercise will also give you your market nightly price.

In another article, (https://www.dunncarney.com/2007/06/layering-limited-liability-companies-does-it-enhance-the-liability-shield/) it seems to confirm the same but was structured in a way that I could not tell if that was only in the case of wrongful conduct.If any of my information seems to be incorrect or misinformed let me know so I can correct my understanding.

If for whatever reason, you do not exercise your purchase option by the exercise date, they get back the improved property and if there was some positive cash flow, you keep that.Unless you have done this before, get a good lawyer to prepare the paperwork.Oren