In other words, does it preserve the business interest of the 1031 if the rental is to an immediate family member?  

Local government isn’t doing a good job preserving much of the area in my opinion.

Andrew nailed it.. but don't forget there are subprime and non-prime that may  be just as beneficial if you don't qualify with DTI keep your options open and do your math  associative to your adjustables

You need to nail down your criteria and then process applications in the order received.

Need to nail down the first one and from there, who knows??

@Bjorn Ahlblad nailed it. 

Stage 3 can best be described as wealth preservation.

Hit Rentometer, Craigslist and your other common rental advertising methods in your local area to nail down the going rate on market rents, and what is/is not typically included for utilities.

A lot of times they are properties that have been in foreclose for 5-8 years where the bank abandoned the case years ago because the BPO was so low and when they do that they stop paying the property preservation company.

Also, it could be tough to get the properties out of a C Corp.There are tax strategies other than forming a C Corp to implement in order to mitigate the tax bite when dealing with passive income but those discussions are outside the scope of these forums.I would definitely recommend consulting with your CPA first to discuss optimal tax strategies and then your attorney to nail down the best entity structure.