So I would assume that a reactive market like TX is following suit with demand.

For us this will be our 1st live in Farm flip.( paid 138k as bank owned for 2001 built house on 5 acres and an inground screened pool, all fenced and separate pastures) .We are adding a garage and Inlaw suite and the market is still on our side.

The structure that you describe is referred to as an Improvement 1031 Exchange (Build-To-Suit or Construction 1031 Exchange) where you sell your relinquished property and the Qualified Intermediary would acquire and hold or "park" legal title to the new replacement property. 

@Gunnar Haugen I would suggest looking for homes that have an in-law suite with a separate entrance or where you could add something like that on relatively easily.

I'm considering going heavy and buying above the average/ median home price and going with a Duplex or SFH (3 Bed /2 Bath) + 'Mother in Law Suite'.

Specifically:- What kind of organizational structure is best suited (LLC, nonprofit, etc)- How would you approach this from a tax standpoint (people are essentially giving 0% interest loans, so can't be tax deductible donations, but also likely no capital gains)- What issues would you foresee and what kinks are there to figure outAll ideas welcome!

I'm looking for a multi family or a single family with mother in law suite or similar structure that can be rented conventionally or as a short term rental.  

And, after six months, the noise and dense surrounding can be a bit tiring especially if you live close to Washington St and the Path station.If you rent for some time, you get to experience everything and if you like the city, you can pinpoint what buildings and what streets you like more or those that suit your tastes.   

I am also ok with a property with a MIL suite of something of the sort. 

Each person may be better suited for a different approach.