Self-directed IRA custodians are registered, FDIC insured (for cash) and regulated in the same fashion as household names in the investment world that focus strictly on publicly traded assets.The questions you need to ask are:1) What kind of services do you need?

I don't have any autos or employees so it's strictly insurance for and around the property.Also, what I did find was that the "insurance guy" (not sure if I should call him an "agent" or a "broker") was able to get me a much better policy than I was able to on my own.  

Stick strictly with what you have, it sounds perfect for a investor.Money is more important that any other factor in investing aside from understand how to use it. 

I am under the assumption that only strict investment property qualifies for 1031.

You might know this already but there are some strict local rules about renting out rooms.

I read in multiple posts here that people were stating that a BPO is strictly addressing the current value of the property, versus potential future value after renovation.

It sounds like you were operating as strictly management of the property. 

@Josue Vargas, Actual rental income is not a strict requirement in order to be eligible for a 1031 exchange.  

They had strict rules against the condition of the property like not lending on mold.

I always try to meet with the city on anything that is not strictly permitted  by the zoning, to help understand the schedule and the requirements.