That said, there are alternative ways to meet the requirements, and with proper planning, you might not need to rely on these specific tests if most or all of the participation comes from you during the first year.

Other CPAs and firms have quoted me 5k-10k+ but are no where near as responsive and personable as my current CPA and accountant.You are going about this properly.  

If the proper reports and documentation are not completed, you run the risk of failing an IRS audit and the cost segregation not being honored.

Educate yourself with resources like The House Hacking Strategy and practice analyzing deals using tools like BiggerPockets calculators.

2) Their contractor must be properly licensed and insured and we require copies of all this.

@Dave Foster is a great resource on 1031 exchanges. 

Here's my free resource; https://docs.google.com/presentation/d/1qCD_XIgmg-2BGGzsDbWq...

There are a lot of great resources here and around the web for people looking to invest in Birmingham.

The problem is, that's not proper accounting because a credit card is a liability, and doing this workaround will reduce your assets rather than increase your liabilities, which totally messes up your balance sheet and debt-to-income ratios.  

Limited labor and resources : Unlike the catastrophic fires in Lahaina Hawaii there are significant resources in Los Angeles to contribute to recover, but quality contractors, tradesman, plumbers, electricians and laborers have long been in short supply.