I'm seeking advise from people who may have been down this road before on whether we should seeking other financing methods to go LLC to LLC or quit claim the lot back to our personal names to satisfy the 1031 exchange rules. 

I'm interested in understanding how the LP structure works for foreign investors.

I would encourage you to learn the market you plan to invest in now and to continue to learn about the different methods of investing.

Quote from @Kevin Hoover:  Input needed for least tax methods of unwinding a family partnership in the next 13 years. 

Tax structuring and LLC advice you can get for a paid fee too.

The BEST method for real estate investing is very simple: increase earnings, reduce expenditures, save, and invest from your own funds.You should focus on increasing earnings and learning how to manage your budget.

I don't believe there's anywhere in the US where you can build a 36 Unit 65,000 SF building at $80/ft which is how you are describing the costs if you expect to build this structure for $5.2M. 

After sending out thousands and not getting responses, or at least not good ones, I stopped trying this marketing method.

Luckily I did have a clause where the sober living company is paying all repairs and maintenance unless it is structural issues.

I have been working on creating more passive RE opportunities and have come across a unique equity financing structure.