Can't really use 1031's since your related.13. 

Or your relatives. 

Using this strategy will definitely show it's dividends down the road vs. buying single family homes.The first thing you need to consider is your relative experience and familiarity with the Phoenix Metro Area.

This way you can also measure your relative success vs the time you put in.

Also, I don't understand your related note.  

I have been actively listening to BP podcasts and reading and there are a few options but i am still unclear.It is much more evident what to do if you are into BRRRR, because then you have an option to seek the short term private loan or even borrow against the credit card or your relatives.

How many of your relatives and friends? 

It's not you that should be speaking with an attorney, @JJ Mayer, it's your relative who, in the eyes of the law, is now a lender.

Your relative cost of same LLCs as above is less than 1/2 of 1% of your net worth (for the LLCs direct and foreign entity costs). 

I read your bio and given your relatively new status as an investor and it appears you will be hiring a management firm as you are not local to Baltimore, I'd recommend you:Establish yourself as an investor of mid-priced properties first so as to gain experience and a solid financial foundationWork with your attorney to draft contracts to protect you as much as possible when you do allow pit bills in any propertyWork with your insurance company to make certain you will be covered despite the breedIf you can't get insurance or your attorney sees no good way to protect you from liability then you have a decision to make about how much of your personal wealth you are ready to risk to law suits.