I know a few RV park owners who 'pocket' a good percentage of their revenues in cash to keep taxes lowered. 

We took over the property management because the owner was having multiple issues with a few of the "tenants" that have illegally sublet the property, and we are now dealing with the ripple effects (e.g. squatters, dogs, dispute with neighbors etc.)The landlord is cash strapped, and has asked me to go in on the property/deal with him in order to get a cash infusion to cover legal fees & renovation costs. 

Not only could this negatively affect your cash flow, but it could also decrease the value of your property.

I need to place 1M in cash and at least 650 in debt to satisy my 1031.

What is the cash flow going to look?

The market doesn't care what you desire for cash flow....it only yields the same cash flow that every other property will have. 

This factor can significantly impact your cash flow potential, especially if you're contemplating a buy-and-hold strategy.

If you manage a property on behalf of someone how do you liquidate the asset to give the owner cash? 

I generally tell the sellers that they won't be able to get another VA loan until their old one "cashes out."

The agent also mentioned that there is also the question of foul play that may come up, such as a scam.