And then let them use the $350K in cash to go buy a completely different asset. 

Mine is only 9 now, but for a few years we talk about assets and liabilities whenever the opportunity pops up.

Im looking to sponge as much knowledge as possible, with one of my strongest assets is my work ethic.

If you are just wanting to buy a performing note in your IRA, you're probably ok in most any state, as long as you have a servicer licensed in the state where the asset is located. 

5) What I am trying to do is to gradually receive the funds, but I'm not sure how to accomplish that.6) I have heard a suggestion to do multiple 1031s and receive a certain amount of cash year, but that would be alot of work since I would have to buy 90% of my current assets, then the next year 80% of my current assets, etc.7) I don't really trust the TIC and/or DST (Delaware Statutory Trust) type properties, so I tend to think of this as the most likely resolution.8) Since some of these properties are triplexes, some would be classified as residential. 

And oh not to mention you've added a cash flowing asset to your portfolio.  

Valuations on different types of assets can be tricky.

However, I would not think that the property tax exemption would extend into commercial assets since these are more investments and not your primary residence. 

@Vincent CraneYou don't necessarily need to upload a copy of each receipt to your accounting software.

If you're lucky an LLC will separate your personal assets and other investments from the investment property should someone sue you.