From the way I am reading your reply, even when you have students/tenants in place, you will arrange for showings?

This is a letter signed by the tenant(s) that summarizes the lease - how much the rent is, the amount of deposit the landlord is holding, (which should be transferred to you), any past due rents owed and any other financial arrangements.

. - lots of expenses and even extra work to arrange all of that. 

By the online tax record there was a payment plan arranged, but there was supposed to be a 4K payment by last week to keep it in place and 28k payment due next year to pay it off fully.

The total will be $55,000 in taxes.So, if I don't do a Section 1031 Exchange, I will walk away from the closing table with $345,000.But, if I do a Section 1031 Exchange, I am required to put all of my $400,000 net sales proceeds into the purchase of a Replacement Property, say a Fourplex, and I walk away with no money, but with title to a Fourplex.But you are saying that I can arrange to borrow $400,000 with the Fourplex as security, a cash-out refinance, schedule it back-to-back with the first transaction, and walk away from the table with both my $400,000 net sales proceeds from the sale of the Relinquished Property back in my pocket, and title to the Replacement Property, the Fourplex.The Replacement Property contains none of my $140,000 transferred basis from the Relinquished Property, and none of my $200,000 deferred capital gains on the sale of the Relinquished Property, and none of the $60,000 unrecaptured depreciation from the Relinquished Property, all of which make up the very foundation of the Section 1031 Like Kind Exchange statute.Treasury Regulations Section 1.1002-1(c) concerning Sales and Exchanges, referring to Section 1031, says "The underlying assumption ... is that the new property is substantially a continuation of the old investment unliquidated."

All payments for services need to go through your broker, who then pays agents their pre-arranged cut.

or arrange a 1031 exchange and pay no tax ?

@Fred Heller Your points are well taken and I think I'm seeing that no arrangement perfectly aligns interests: it's a classic principle/agent dilemma.

I wouldn't call this arrangement standard operating procedure for suburban Boston.The furnace and oil tank are situated in an ajoining shed which buts up against the house.  

From here Stephen can re-sell  for profit,  or for cash flow by making arrangements with the current residents.Please correct me if im wrong, any one!