@Sarah Lorenz @Karen Margrave Thank you for your perspectives on the builder's possible role in this deal.

With any entity consideration, it's always good to consider things from 1) Insurance, 2) Taxation, 3) Legal, 4) Financing perspectives - would be fun to get your attorney, insurance agent, banker/mortgage broker and accountant together in a room and get the lowdown on S-corps, LLC's, trusts etc, to see how they consider each of these from their viewpoints!

I like the "gambling," perspective. 

Great story and perspective. 

I am thinking of this from a sales perspective as a means to help people diversify their portfolio using real estate to supplement their other investments. 

If that perspective will help you, PM me for contact info.Sean

So the only carry over into the new DST Property is the 99% gain being carried over.Since the DST has a L/V of 50-60% and most have a low land to improvement percentage you wind up with a good portion of fresh depreciable property with the 1031 exchange from unimproved property into the DST.

We can consider the problem from a rent perspective as well.

Before you tune me out as a crazy contrarian...let's consider some reality check perspective...The road to real estate success is paved with countless golden tales of auction bargains, foreclosure and shortsale deals, distressed property below market buys, off-market steals and great negotiation tactic strategies.  

@Robert Musallam or @Chris Mason,What's your perspective on someone, like me, getting their first property in the Bay?