It's helping me collect enough replacement value to execute the 1031.

The Millionaire Real Estate Investor by Gary Keller Written by a very successful real estate agent, investor, and brokerage executive, this book walks an aspiring investor through the necessary mindset required to succeed in real estate investing.

We were fortunate to be able to execute exactly as planned and within the prescribed timeframe.

The misconception comes from the execution and not the concept.

That contract is subject to inspection within so many days of the execution of the contract, then get in there with your buyer inspector. 

Perhaps receiving security deposit is a form of executing the lease. 

@Prashant ShethYou may only execute one 60-day/indirect rollover in a 12 month period.Since you did not actually return the prior funds and those are now considered a distribution, you have not used that one-time allowance.  

Also, these sellers are now additional testimonials for me when I'm speaking to other sellers or potential private lenders, as I executed exactly as I said I would and never missed a payment or had so much as a single issue during the lease term.Disclaimer...

You may get lucky with a slow season right now, but I have been down the 203K route and without a good contractor signed on board you will have trouble.Your plan is still a good one, but without the proper pieces of the puzzle (contractor, bank to sign off on 203K + contractor) you will have trouble executing it.

Owner placed property in land trust, we immediately executed a Change in Beneficial Interest for granting me 90% and him 10% (trying to avoid the DOS clause).