Disregarded Entity LLC for 1031 in Non-Community Property State

[Christopher Brown]

I'm working toward closing the downstream leg of a 1031 exchange. My wife and I owned the exchanged property in our own names as joint tenants. For mortgage swap eligibility-related reasons (we don't have the net worth to qualify for the swap as individuals, but do have enough to qualify as guarantors for an LLC as the borrower; the swap is about 40bp better than what the bank can offer us directly), I'm exploring taking title to the new property as an LLC. My QI, @DaveFoster, has walked me through the ins and outs of the disregarded entity rule for 1031s, and I'm looking to see if anyone has had any experience doing this and anything you'd recommend I pay attention to from the legal and/or tax side of things.

Some questions:

• Mississippi, where I'm buying the new property, is not a community property state. From what I've read it looks like that means I can't have a single-member LLC with both my wife and I as members. Do I have to create two single member LLCs, one for each of us, and then have both LLCs take title to the new property as joint tenants?
• When I have my atty incorporate the LLCs, he simply designates them at the time of filing as disregarded entities for filing purposes, and then the EINs will just be our SSNs?
• My QI has suggested that the non-conformity between the old and new titles will (not surprisingly) raise flags for field agents.  Anybody gone through the process of defending a 1031 under these circumstances?
• What else do I need to know/pay attention to?