I also hope to save a little money - I notice that at my company, what we pay in insurance for more property (and more valuable property) is less than what I pay, and we have higher liability coverage (though I do have a higher PUP than my company, but I leave that out of the equation).Thoughts?

Another item that plays into this equation is the location of the property.

So, for my two cents if you have the patience to wait it out on a areas then you can remove part of the equation of catching a neighborhood at the right time (GP vs WV).         

@Adam Schneider - that's an interesting idea. so you're saying provide a fixed rate loan to him that equates to the approximate profit of a split?

You have 45 calendar days to identify your potential replacement properties and you have an additional 135 calendar days after the 45 day ID period to complete your 1031 Exchange by acquiring and closing on your replacement property, which equates to a total of 180 calendar days to ID and close.

At the end of the day, he understood that I took him into account in the equation, but understood the position that I was in.  

@Jack MiddletonThere are two sides of the equation with a Solo 401k plan.A 401k is an employer sponsored plan, and there needs to be a business that establishes the plan as a retirement savings benefit for the employees of the company.  

Just wanted to point out - Jon Holdman's formula is using NET rental income in his equation, which already takes the debt of the rental property into account (and expenses, which is good) .Keep searching, you should find a lender who will work with you.  

At $7500, that equates to $938 depreciation and book value of $6,562.

Being able to analyze the deal and knowing how to analyze it truly helps take some of the fear out of the equation.