The 4 properties are titled in 3 different ways for various reasons at the time, 1031 exchanges, for convenience and urgency of gaining signatures and closing. 2 homes are titled in both our names. 1 titled in my name only. 1 is titled in both our names in the revocable trust.

Up until recently it would have been illegal as it would violate the 1934, as governed by the US Securities Exchange Commission (SEC) and adopted by almost every state in America under what are called "Blue Sky" laws.  

He evaluates deals in my area and when he spots one, he sends me out to evaluate using his "trade methods", in exchange he is offering me a profit share, knowledge, and and has asked me to sign a 2-year non-compete.I'm not sure what I'm exposing myself to by signing this non-compete.

As such - you are not eligible to do a 1031 exchange or installment sale to defer tax. 1031 exchange and installment sales are methods to defer or lessen the immediate impact of taxes at year of sale.If you are in the business of developing land and you need to buy equipment to improve the land - then yes you may be able to factor in the equipment in your gain calculation.If you need a vehicle to transport equipment or to meet with contractors - the vehicle may also be factored in the gain calculation.

If you search the Seattle Times you will find "cars exchanging gunfire".

Since you are looking for an exchange of services, not necessarily cash, you may find some people willing to bite if you place an ad on one of those sites. 

Is this a kosher way to perform the exchange?

In exchange for a split on profit - 65% us - 35% them. 

If you are looking for passive income, I would look into a syndication of 150+ units.If you are looking to do a 1031 exchange, discuss that with the syndicator unfront as most will not be eligible.

While we are here for the 6 months, we would like to buy a small unit that needs fixing (floors, new kitchen, new bathroom, etc), so that we can flip it and then buy another one on a 1031 exchange.