Typically, when I work with RE investors, we'd make a preliminary legal plan to ensure that both the legal and business goals align before creating any sort of entity set-up.

The QI for the 1031 forms an entity which takes title to the new property and holds it while the old property is sold. 

Here is the current list of cities:http://ritaohio.com/MunicipalitiesI am rather sure that the list has only been expanding over time.As a person/entity who earns rental income in any of these jurisdictions, you are required to file a return not only for the state, but also for RITA.

Once when the replacement property is purchased and held by the 1031 Intermediary in an entity for you and once at the end when its finally transferred to you.

Don't use some unknown entity from another state that no one here knows.I think both of these companies will shoot you straight. 

Rahul, I have about 10 you can talk to. you'll also want to have an equity partner with new build experience so you can get the best terms. most of ours are national lenders. we doing joint parnterhsips for new builds and take a small interest in a single purpose entity for example:Rahuls New Build LLC (95% owner)Pink Development and Construction LLC (5% owner, no voting or distribution rights)Take title to "Miami New Build Limited Partnership LLC" which is a single purpose entity. 

The biggest change will impact seller finance lenders who will be required to be licensed as a mortgage company once they exceed 3 loans in a consecutive 12 month period and will apply to all entities they use.

Quote from @George Kopp: " the borrower has agreed to personally guarantee the loan. " A borrower is legally obligated on the loan to begin with, the concept of personally guaranteeing one's own obligation is meaningless.Personal Guarantees come into play when there is an agreement to become liable for the debt of a third party or related entity.

If you don’t have one I would recommend Lodmell on this one since you they are the best when it comes to foreign entities.

So use of a remote entity is highly suggested.