If there is a mortgage attached to the property there's a 99.99999% chance there's a clause in the mortgage that requires it be paid off when you sell - regardless if it's in your personal name or an LC.Yes, it does complicate things when doing 1031 - but not really... there are rules you have to follow to stay in compliance with 1031. 

@Ceasar Rosas one of the banks that I have told me they would only support up to 2 units with a VA home loan. 

That's just a rule of thumb I use for my clients.

I have been at the REI game since 1992, I have a rule that has saved my butt many times, you can't force a deal.

If you haven't looked at 100 apartment deals and spoken to property management companies on running scattered site mfam (apartments that aren't big enough to support onsite staff) chances are you're in for some surprises.Don't be arrogant and in a hurry like I was.

A very general rule of thumb is the 1% rule!

Comps support around ~360 apprisal.  

The bank circumvents this rule by simply setting a high enough price point that they won’t lend out on cheap houses

I suggest posting signs as @Nathan G. recommended and placing "No Swimming" rules in your online house rules on your Airbnb and VRBO listings.I would even include the "No Swimming" sign in your pictures too.Doing this MAY reduce your risk to an acceptable level.

The rules were a bit different then and I was able to get a broker's license.