Because of 1031 exchange rules, I have to make the purchase of the property under my own name, but would like to put it in a LLC to protect me in the future.  

@Brad Singer because I'm a foreign national, not sure how it would work. 

In the third round of counter-offers the Seller dropped two closing extension options for 1031 exchange on us.

If I could 1031 exchange both of those to something in Bay Area but $400,000 (combined values of Indy SFH#1 and #2) won't buy me anything except maybe a condo, maybe a SFH in Sacramento.

I recommend that you hire some off-duty Rambo, explain the situation and offer free room and board in exchange for handling this issue till you get it straightened out.

I for one would do this deal with you and provide the cash needed in exchange for equity partnership if the numbers make sense.

You would still need to find either a PM or a rental agent who could handle tenants, but most of your maintenance and capex is taken care of.For option 2, since its still real estate in the US, you could do a 1031 exchange which makes it even more attractive.I'm very glad to hear you haven't just been scammed out of $50K.  

Like in the example of buying a quad, living in one, rehabbing the rest, increasing rents for the rehabbed unit, using the GMR for the area to find a new valuation price for the quad, refinancing, buying another unit, waiting for another year, monitoring the GMR and selling the first unit at a high appreciation, using the proceeds towards a 1031 exchange and repeating the process.

So in your example, if your ROE is only 5%, and you have other investment opportunities that can make more than 5% (ideally 10% or 15% or higher), then it is time to 1031 exchange into another property, or sell and put the money towards another type of investment.Put simply: if your ROE is LESS than the ROI of another investment opportunity, it is time to consider selling.Obviously you would also want to take transaction costs and taxes into account as well.

Maybe ask her in exchange for you not doing tours with her still in the property that she move 2 weeks early to give you time to get a tenant.What about putting her up in a hotel for a few days so you can have a full on open house?