It sounds like two out of the three components of the 1031 exchange were in place at the closing. 

Stay with me.....Say I get a place that allows me to live rent free for the year I stay there or best case scenario put a few hundred bucks in my pocket and turn a Profit.

Something that our tenant can sign on the condition of the rental.Check out File Place: https://www.biggerpockets.com/...The link is located in the footer of every page on the left side.

Attention new investors: As I’ve immersed myself in the BiggerPockets forums, I’ve observed an extreme emphasis placed on asset protection by those entering the business but their approach and where they decide to allocate their time and resources is misplaced.

Total profits last year—subtracting property taxes, management fees, insurance, and repairs—were approximately $12k (which was then divided into shares for us and relatives).The city is Grants Pass, Oregon, population 40k, with median household income around $50k (50% lower than the national average).

For my OOS rentals, they're either in places where I used to live, or where I have family... not random markets I picked solely because the median price is low and the made up cash flow based on rosy assumptions is high

Let me share my story.As the title suggests, I received a house as a gift from my father-in-law upon getting married.

please share any info on insurance companies that provide umbrella insurance for liability protection .

Hence, they “shared” in 1/2 the commission.  

Doors (or clients) that require extensive and constant attention from my staff are not long for this world and will be cut loose.As @Richard F. mentioned, clients fall into those two categories (micromanaging, time-sucking parasites who place zero value on the value of your time, or the "don't bother me unless the house burned down" clients).