This question is most likely best for a lawyer familiar with local regulations and code.

I'm not against innovation but every point you raise is pre-existing or illegal/ against regulations. 

I admittedly have a bias against condos for the following reasons:1) HOAs - both a lack of control over fees and assessments, as well as potential regulation changes2) they don’t appreciate as much3) you have to work a lot harder to differentiate yourself from your neighbors. 

The quaility of old existing units, and the ability of the long term population to pay new rents, blended with an influx of small high end mill conversion units is simply not balanced.

Investors should therefore exercise significant care when choosing their Qualified Intermediary because of the critical role the company will play in the administration of their 1031 Exchange transaction.It is extremely important to note that 1031 Exchange Qualified Intermediaries are generally not required to be licensed, regulated, audited or otherwise monitored by any regulatory body.

For example, some areas SFH may exist but the clientele that move into them have to be comfortable with the neighborhood dynamic.

Thanks for all the advice, I'll definitely have to research more as I go about how to build out my portfolio and whether I want to pay down the existing loans or buy more.

The standing plan is to put in mini splits in each unit once the existing furnace finally dies.  

You do have to qualify and be accredited in most cases to join such clubs, but they do exist.

Bottom line these are NOT federally regulated or state regulated loans.. they who have the gold make the rules.