Other states may allow it, but require you to follow strict rules, including disclosing your role clearly to both the seller and the end buyer.

If you're down to dig into the numbers and play by the rules, NYC still has long-term upside.

The SBA recently changed rules around these programs.

What's a good rule of thumb, if there is one?

A 1031 exchange from a personally held property into an LLC using a DSCR loan is possible, but it requires careful planning to stay compliant with IRS rules (especially around "same taxpayer" requirements).

If you advertise it like a traditional listing, you could risk violating real estate laws and be seen as operating without a license.Some states have tighter rules than others.

You are interpreting the rule incorrectly.  

@Jonah B. it would be customary and appropriate to do a move in/move out condition inspection, and to have any specifics like house rules, quite hours, parking arrangements etc all down in writing and they can be exhibits to the lease or have it in a lease addendum. 

And you gotta know the local rules & regulations. 

If you are a property manager, check with legal & insurance.If you want to take ownership and change the status of the current renters, you have to fulfill the current lease, give notice and after they vacate change the rules.