It costs me a lot less time and money than maintaining several LLCs.

I agree with Nick and would take the $140k and leverage it for a easy to maintain rental in a good area of the city with easy access to transit.  

This will allow me to have a separate budget to maintain the homes rather then relying on the tenants to inform me.

However, my thought on this is to discount the interest rate to the buyer enough to offset the property tax homestead exemption and maintain this in my name.  

By doing it this way you show a complete custody chain for your funds to maintain the 1031.

However it makes me question everything.Who is maintaining it and why are they failing?

I know this is an old thread but it helped me so I figured I would post this for the sake of forum posterity-Here's the actual law:http://www.justice.gov/crt/fair-housing-act-2Here's the text pertinent to the exclusions: (b)Nothing in section 804 of this title (other than subsection (c)) shall apply to-- (1) any single-family house sold or rented by an owner: Provided, That such private individual owner does not own more than three such single-family houses at any one time: Provided further, That in the case of the sale of any such single-family house by a private individual owner not residing in such house at the time of such sale or who was not the most recent resident of such house prior to such sale, the exemption granted by this subsection shall apply only with respect to one such sale within any twenty-four month period: Provided further, That such bona fide private individual owner does not own any interest in, nor is there owned or reserved on his behalf, under any express or voluntary agreement, title to or any right to all or a portion of the proceeds from the sale or rental of, more than three such single-family houses at any one time: Provided further, That after December 31, 1969, the sale or rental of any such single-family house shall be excepted from the application of this subchapter only if such house is sold or rented (A) without the use in any manner of the sales or rental facilities or the sales or rental services of any real estate broker, agent, or salesman, or of such facilities or services of any person in the business of selling or renting dwellings, or of any employee or agent of any such broker, agent, salesman, or person and (B) without the publication, posting or mailing, after notice, of any advertisement or written notice in violation of section 804(c) of this title; but nothing in this proviso shall prohibit the use of attorneys, escrow agents, abstractors, title companies, and other such professional assistance as necessary to perfect or transfer the title, or (2)rooms or units in dwellings containing living quarters occupied or intended to be occupied by no more than four families living independently of each other, if the owner actually maintains and occupies one of such living quarters as his residence.

Just seems to be poorly done, makes the lot seem smaller, and it's just a lot to maintain.

Maintaining the property is virtually the same as running a household.  

It hasn't been maintained- weeds all over the place.