I'm seeking advise from people who may have been down this road before on whether we should seeking other financing methods to go LLC to LLC or quit claim the lot back to our personal names to satisfy the 1031 exchange rules. 

You may need an asset partner to help you with a few flips so you have full access to financing. 

Feel free to DM me if interested in discussing more, would be happy to assist.

At least run this with good, bad, worst scenarios.

My point here is I don't know how they guarantee a deal but that is an interesting proposition.  

As long as the city considers your property a true SF, you shouldn't have any issues getting this permitted (in theory, yet to see how some municipalities will handle this law).

Sherman does seem interesting though because of the lower cost and growth potential.  

My wife and I thought we had an easy opportunity for a double (baseball analogy) with a flip home in Lakeland, TN we were able to get well below market this past summer.

That being said my residential rental will have a positive cash flow of $500 and I plan to rent out this other side of the duplex immediately and will have a balance of 600 to cover for the mortgage.

Purchase price: $125,000 Cash invested: $65,000 Sale price: $250,000 Wish I could have held onto it but needed the money to fund future deals What made you interested in investing in this type of deal?