Currently in discussions with representatives from Realized1031.com, a start up that sets up DST portfolios for 1031 exchangers. 

Would we owe less if we set up an LLC (s corp?)

Your basis is going to be set by what you paid for it and to be eligible for a 1031 has to be an investment property, not something bought to be resold. 

I am looking to do something but a bit hesitant with the up front fees especially given the limited upside and risks involved in today's market. 

Hire a tax professional to help set everything up. 

This is outside of the city limits, so it's unincorporated Pierce County, Washington State.

I don’t recommend putting a time limit on when to buy, just evaluate each property and buy when the numbers make sense.

@Jimmy Hung if you can find an insurance carrier to offer Agreed Value, you can insure for a lower limit without being penalized for underinsuring. 

Nearby Rural: Limited development might mean slower changes to the landscape but potentially fewer surprises.

if its all your money and risk. then the 50 /50 split is not warranted at this level.I would want a better split for sure.. something like Hey we pay you set fee and a bonus but no way 5050 at least for me