The LP or LLC that owns the real estate can do a 1031 but that does not happen very often as the process to buy out members that don't want to go along with the syndication, the pressure of finding the right next property, and the need for additional investors and financing creates an almost unbreakable barrier to completing a 1031 successfully as a syndication.If a syndication is truly set up in such a way that the investors are owners of the real estate itself as tenants in common then each owner can do a 1031 on their portion of the sale when appropriate.

If you were to sell in a down market you could easily lose a portion of or all your principal pay down.

Step 3 you will rent out the unitsStep 4 you refinance doing a cash out refi so you can pay back the PML/HML, all while acquiring a mortgage and the remaining portion of the money is what you will use to repeat the process by buying your next property.When you do the cash out refi you want to make sure you use a bank that has no seasoning so you can do it immediately as opposed to waiting a year.

I plan on renovating a portion which will involve the removal of a wall.

Conversely, if one's focus is rehabbing/flipping is it vital to be available during more traditional "business hours" to visit your projects, and work more quickly with industry professionals (contractors, lenders, etc...) 

One lender is offering us a variable annual percentage rate of prime + 0.50, with no fees and an option to fix the rate on a drawn portion at 0.50% above the variable rate. 

They pay market rent/manage the home (I pay for parts/labor but they coordinate) and after 3 years (when we want to have kids) they move out but receive a portion of equity in the home (5% ?)

I feel very comfortable with everything as far as the actual work and construction portion (it's all work I've done/managed before).What I'm unfamiliar with is the legal process (permitting, inspections, occupancy, etc).

With "The Great Wealth Transfer" According to Forbes, some experts are estimating that somewhere between $30 trillion to $68 trillion dollars will be shifted from baby boomers, people born between 1946 and 1964, to Generation X (1965-1980) and millennials (1981-1996).My client's $1M+ portfolio is a portion of that current transfer.

Most of the 50K will go towards the interest and smaller portion towards principle.