I verbally agree to exchange his service for staying in one of my mobile home rent free.

My margins are still tighter than what I want but it gets me to my next project and a sale within 3-4 years utilizing a 1031 exchange.

It gets even hairier if the property was originally acquired via section 1031 exchange.

As I understand it, provided the 1031 is constructed such that the value of the guest house is allocated properly (i.e. 33% value assigned to guest house, balance to primary rez) then it would likely pass 1031 muster.Has anyone here been party to an exchange like this that dances in these grey areas?  

After the 1031 exchange has completed, you will hold the replacement property for say a year, then you do a cash out refinance on the replacement property.  

@Jarred Sleeth  Tax exchange while values are still good into a better neighborhood.  

If a new investor brings me a legitimate opportunity (a qualified lead) and asks if I'll work it with him or her in exchange for splitting the upside, I'll usually take that deal.  

When I spoke with him on the phone I couldn't really make out what he was saying but definately foreign.

There are a strong number of states that require you to register your foreign business entity prior to doing business and received protection.

For running an LLC in another State, you should register it as a "foreign LLC" in the remote State that you want to do business in, which basically means it is registered in your local State, but is also allowed to operate in the remote State.Property management has different rules in different States.