I come from a QB background, and love the control and reports.

If my success depends on market appreciation which I don't control, then I'm not in control of the outcome and my exit strategy is weak.The only way that makes sense it to buy the property at a deep discount to the current market, and write the option price near today's market value.

Remember you don't have to own a property to control it.

My question is on the power of sale part - we both agreed that in event that I cannot repay the loan, I would give up the property and he can gain full control without having to foreclose.

Each the 1031 person/entity would have 50/50 control of the entity that owned the new property. 

Also, another reason is it is one thing that is out of my control...I can't force a buyer to accept 80% of market value.

A couple of key points to remember when landlording in DC....DC has rent control if you own 4 or more units (It might be 5 or more?).

If you move to switch I would make sure whoever you switch to has these controls in place (i.e. not too small but not too big either).  

You have less control over costs when you own a condo or coop. 

Remember you don't have to own a property to control it.