If you are audited and the IRS looks at your 1031 and there is only your word against your actions, you're going to lose the audit.I totally get you wanting to avoid those nasty ordinary income taxes. 

However, looking to leverage real estate to generate income and or future wealth.

Sure, what you do will affect those latter two, but nothing about the realtor.Perhaps with in your setup the lawyer and accountant may need to confer, but the accountant will prepare the return according to whatever income/expenses you provide and whatever legal structure your lawyer puts together for you. 

In other words, we're turning RE income (not countable toward earned income for retirement contributions) into "schedule C income".

Hint: if there's only one box for the rental income then enter the combined rent from the purchase price.

But as the properties get larger that smaller percentage = a much larger monthly income than the smaller properties where I have a larger percentage ownership.

Financial Management: Set up a system to track your rental property income and expenses.

SBA won't loan on the gambling income, or anything passive- your bottom needs to be in the gas station chair.SBA loan now takes LONG processing time unless you go direct.

Additionally Dayton has a pretty strong rental market, making it a good place for real estate investors to generate rental income.

It is income driven so you may not qualify.  2.