Investors should therefore exercise significant care when choosing their Qualified Intermediary because of the critical role the company will play in the administration of their 1031 Exchange transaction.It is extremely important to note that 1031 Exchange Qualified Intermediaries are generally not required to be licensed, regulated, audited or otherwise monitored by any regulatory body.

You can only play games for so long.Chances are your next door neighbor is an IRS agent and turns you in when your tenants blocks their drive or some other random event disturbing your IRS neighbor.ADU catches fire and your insurance won't cover you, because it was an illegal and unpermitted structure.The city inspector told the last guy not to build or rent it, and is now pissed and wants to make an example of you and just red tags the whole property and no one can occupy for the next 1-2-3 years while you wait for a hearing.Then when you get the hearing, "staff" recommends you tear the whole structure down, and if you still want an ADU, you can apply for a permit and rebuild it.Your tenant quits paying rent and won't move out and you can't evict them, because there is no valid lease and they're just your "roommate".Probably a dozen other bad things can happen to you when you do stuff like this. 

I've been researching the topic of limited liability and the different options to achieve this.

By your whole post, you seem like you’d be a nightmare to deal with if you were my landlord.

But there's no body of case law indicating that to be a concern.

Strategic Purchase: Acquired a discounted double lot below market value with a $17k impact fee credit.Custom Design: Built a 6-bed, 5-bath home tailored for co-living or multi-gen use, maximizing tenant appeal.Efficient Management: Managed construction, and self-managed operations to minimize costs.Premium Marketing: Furnished the property and used multiple platforms to attract quality tenants quickly, achieving full occupancy.What was the outcome?

Can I ask why you want to rent out a short term rental instead of buying or renting out a whole unit that you already own to a tenant on a one year lease?

We have an exceptional reputation that we have worked very hard to achieve.

Maybe a property or two they'll do the whole comp analysis with the contracting bid and deliver it, but if you pass twice do not expect them to answer much anymore.I use wholesalers for 85% of the deals I source. 

Before you know it, the whole portfolio is paid off by age 65-70, and you’ve got financial freedom without relying on Social Security.