I don't believe the average Title III or small time investor can afford to properly diversify with automated underwriting. 

If you buy right and do a proper analysis then you can mitigate your risks significantly.

You need to be prepared for that scenario if only to ensure you don't get stuck in a corner if you wanted to buy and hold.

I want to identify a proper for a 1041 exchange that I just completed.

Even if you are able to incorporate with the help of free online forms, those forms both have faults within them and are not going to educate you on proper compliance methods.

The Safe Harbor rules you eluded to only apply if the foreclosing bank buys it, and did their suit properly.

It will cost about $1,500 a year to maintain all of the dues and associations so ensure it will be worth the cost to get it, hours of studying and classes, maintaining it.Good luck.

If an investor performs proper due diligence and buys right, the investor knows the total return though exit of the property at the time of acquisition.  

Contractors that can get the job done properly and on time.

Part of it, I believe, is to ensure that they know who they are working with and that they are meeting their ethical, regulatory and legal obligations (e.g. not poaching on an established relationship).