I think it will take years to sort out, and at a minimum:1- getting out of this recession and 2- a lot more SFH+ADU resales to establish a clear track record. 

These are the same people that still believe you get more productivity out of your employees when you keep track of how long they are at their desk....So while we might see a shift in the startup and small business space I don't see telecommuting taking hold until the generations of leaders and board members that we currently have in this country, over say 55 at the moment, are no longer in the workforce, or at least are no longer in control of company cultures.  

The QI will help advise and structure the 1031, create the taxpayer's 1031 Exchange account, prepare the necessary 1031 Exchange documents, securely hold the proceeds from the relinquished property sale, keep track of your 45 calendar day/180 calendar day deadlines (and also provide you with an identification form), and coordinate the 1031 with the closing agent.

Could we just keep track of the proffits and expenses ouselves and each report our share of it on a 1040 schedule E come tax season?

Then use items for the non-inventory or services or inventory you have going on, to track everything from repairs and maintenance to rent.

@Craig Curelop so far I am following your track!

You have to have policies and processes in place to keep them on track and let them know you're a professional.

-Is there a software that investors recommend to track everything?

He wants to stay and we're okay with that as long as he just gets back on track. 

You could scale up your rentals as your develop a track record.