And then let them use the $350K in cash to go buy a completely different asset. 

Mine is only 9 now, but for a few years we talk about assets and liabilities whenever the opportunity pops up.

I would guess the money moved to the end/user distribution & boutique products - oils, edibles, pain reducing compounds, etc.

Im looking to sponge as much knowledge as possible, with one of my strongest assets is my work ethic.

If you are just wanting to buy a performing note in your IRA, you're probably ok in most any state, as long as you have a servicer licensed in the state where the asset is located. 

5) What I am trying to do is to gradually receive the funds, but I'm not sure how to accomplish that.6) I have heard a suggestion to do multiple 1031s and receive a certain amount of cash year, but that would be alot of work since I would have to buy 90% of my current assets, then the next year 80% of my current assets, etc.7) I don't really trust the TIC and/or DST (Delaware Statutory Trust) type properties, so I tend to think of this as the most likely resolution.8) Since some of these properties are triplexes, some would be classified as residential. 

And oh not to mention you've added a cash flowing asset to your portfolio.  

Way less expensive and more productive.

Valuations on different types of assets can be tricky.

However, I would not think that the property tax exemption would extend into commercial assets since these are more investments and not your primary residence.