@John Vanhara, The reverse exchange is a complicated process specifically because of the things you mentioned. 

. - Going to another market with minimal knowledge (sure you can Google your life away), sounds like unnecessary risk to me.

We are trying to offer suggestions for him to minimize his tax obligation without making things too complicated. 

Having partners complicates things as the buying entity for the replaxememt property typically has to be the same as the selling entity.Two basic rules for the 1031....ALL proceeds must be reinvestedThe purchase price of the replacement property must be equal to or greater than the sale price of the initial property(less actual selling costs)@Dave Foster knows all this stuff, and any possible exemptions.

Refinanced to eliminate unnecessary costs.

To make it more complicated I have 5 different management companies.

There is also the privacy part, but its going to get more complicated and possibly expensive if you are just self managing.

And now that money invests in real estate notes, tax-deferred until I'm old and gray (and it is far less complicated than owning real estate directly).

Less complicated and less risky.

This is an unnecessary comment, it was an honest question from someone trying to learn the process.