Yes, you can do SDIRA buy a distressed property and rehab the property.BUT be aware of "Prohibited transactions" and  "disqualified person".

I've never personally worked on a transaction like this, but know folks who have.

I want to use some of my inherited funds to start doing some PML and EMD but I don't want it to pass thru on my personal return. 

In your case, the LLC that owns the single-family home would need to be the one making the new purchase to qualify for a 1031 exchange.However, using a 1031 exchange to buy out shares of another LLC is generally not allowed, as the IRS views LLC membership interests as personal property, not real property.

@Lara Taylor So that everyone can learn from your experience, would you mind sharing the name of the company.

Learning as I go…I suppose I need a calculator for 35-units to be turned into 35 airbnbs. 

I look forward to making connections and learning from you all!

You can still work with an unlicensed person, as long as they know what they are doing, and you can hire a licensed representative if you have to fight the IRS later.The single most important factor in selecting your tax person is technical competence.

I'm looking forward to learning as much as I can as I grow in my experience with real estate investing. 

I have only been using the bank accounts to pay business/property bills and pay down related debts, he has been using the business bank account for anything and everything from purchasing vehicles to other personal non related investments.