But if you were to move out at any time and rent that house for a year or so, you've just created the ability for it to be treated as an investment property and do a tax deferred exchange on it.  

It's a small part to give up in exchange for other items.

@Brandon Hall - can you touch on the impact this might have on property that was  acquired via 1031 exchange, where the basis will likely be far below market value; it seems that the percentages of basis turn into small dollar amounts relative if the property were acquired by just purchasing it. 

I know that in my state you have to be careful if you are offering on behalf of others for the  sale or purchase of real estate, exchange of properties, negotiation of rents or leases, collecting rents, listing property for sale, writing and presenting offers, negotiating options, conducting auctions, advertising real estate, prospecting for clients and customers.For sure find out what the laws are in your area and follow them.

For future reference, this could have been structured as a combined Reverse 1031 Exchange and an Improvement 1031 Exchange. 

The guarantor offered a year upfront in exchange for a modest discount, which I accepted.

If plumber  finds foreign object I bill tenant.  

This is when one must decide if private money is right for them.You can structure the deal to bring in a couple of money partners for the balance of the down payment, in exchange for a preferred return and some equity.

And in Milwaukee when the unit first comes on, the heat exchanger and cabinet must go from fairly often zero degrees to running temp before it ever begins heating the space.As far as leaving one till it dies before replacing...

I like the exchange of thoughts here.