To keep things running well, think about getting a local company to manage the property, make local friends in the business, keep up with market changes, have a backup plan, make sure you have enough insurance, follow the local rules for renting out property, and keep some money aside for surprises.

You'll have issues with selling.You'll have issues with the county if they find out.You'll have issues with insurance if there is a claim, and they will do an inspection.If it is not legal and documented, everyone will find a way to penalize you and take your money.

Or do I only report what I actually collected and ignore the fact that I am "charging" more? 

I would say to only invest overseas if you enjoy the actual travel to that destination.

That's a lousy spend of money.

In our opinion, an investor should only work with agents that meet at least one of the following:1) Own rentals themselves for at least 3 years, at least one of them they bought below market.2) Have a 3-5 year track record of rental transactions, that they can document.3) Know how to calculate 1% Rule, ROI, NOI, etc. and demonstrate how to actually apply them to assist an investor client.4) Have access to tired investors selling their rentals.5) (what can you add here?)

Where can I go to borrow money to give the contractor in order to get the project started?

You can get creative with recasting mortgages, refinancing, etc. but at the end of the day these things cost you money. 

The 1031 only requires that the old partnership sell actual real estate and buy actual real estate.

They should be paid off with the property’s insurance money.