I am considering a 1031 exchange to purchase a commercial residential apartment, although finding a suitable property has proven challenging.

I found that the estimated renovation costs to be under and the ARVs to be way over - this is now proven where another investor purchased the property and is trying to flip it and I've seen several price reductions. 

It is slower, but it's proven to build real wealth.

If you find a less valuable property, you can still defer some of your gain but you would end up recognizing some tax. 

I would love to join in on any BP groups that do OOS deals  (I have proven time management, attention to detail and paperwork organization skills in exchange for getting to learn alongside some REI masters). 

Unlike traditional real estate notes is something that is easy to do from afar since you do not get access to the interior anyways so there is nothing you can physically inspect.You are correct that you will get $500-$600 a month in payments but also recognize its taxed at ordinary rates... 

My background is in math and engineering so I also think it'd be cool to analyze their spending and maybe start recognizing areas for improvements. 

This immediately struck me as odd as I wasn't aware of any form of compensation to the PM for any maintenance related activities, just 8% of gross rent and 1-month of rent to lease the property, per our contract.Naturally I wanted to understand the nature of this arrangement, specifically how much mark-up is being charged, so I referenced a specific sewer repair bill from 2015 that was $2,600 and asked him if he could provide the vendor invoice so I could understand how much the vendor charged and how much revenue the PM recognized.  

California does not recognize series LLCs.You also want to look at whether a pass-through entity helps your bottom line and your taxes.

Once you've proven yourself for a couple years, then you will have everything you need to step out on your own and build a sustainable business quickly.