For one, it defeats the entire purpose- if you are going to be interacting with the tenant and making minor maintenance decisions, then you are wasting money on the PM. 

If you are intentionally circumventing the spirit of the law, you always run that risk. 1031 isn't a work around though; it is the purpose of section 1031.

It's certainly not that the gas heat doesn't get the place warm enough - it most definitely does.But the crowning joy was that when we went in for another purpose, we found that they had not 5 but 7 children living with them, AND THEY HAD BROUGHT IN GRANDMA, (who is most definitely NOT on the lease) too. 

Their purpose is to relieve the day to day management from you but it is still your property to oversee and you need to communicate with your PM.

I know this is something @Brandon Turner espouses and tells the story of how just this tactic, at church no less, helped him snag a pretty good property (the 24 unit, I think).And thinking back, it's wild that Brandon was the one to promote this considering how legendarily introverted he describes himself as. 

Hello everyone, I am currently looking at a property in Philadelphia which is FSBO. I do not have any experience with FSBO’s. We have met with the guy at the showing of the property and we got along very well we have ...

I am expecting some huge promotions to get people in casinos while we are there. 

For piece of mind purposes I always recommend getting it, especially if it is something you don’t fully understand.

You can still use the LLC for tax purposes.

I can’t self promote here, but we had a cabin called Moonshine Manor that did about $22K a year.