The fee I will charge is low because I will work based on quantity of properties, but I do believe it can create enough income for me.

In my case it was a tiny portion at the edge of the property and had little effect on me.Yet another possibility is that this garden and the encroachment has been there for some years and the neighbors may have gained possession of part of the property via adverse possession.  

We have the cash to get 1-2 places locally, or get a tiny beachfront studio that we could occasionally make use of.

They already offer a "bid room" discount for orders over $1,500 but if you get enough quantity from multiple projects you can begin asking for discounts under $1500 purchases.

What I *dont* understated is if a 721 Exchange can be/is ever used on a 'tiny scale' (relative to REITS) of just 1 to maybe a few properties to add more flexibility going into the newly aquired property(s)?

This is a material cost and quantities math problem.  

Anywhere convention where the focus is on quantity and not quality is a waste of time. 

Look at the trend for tiny homes now.

So don't put it on a tiny second floor efficiency.

I agree with @James Wise, you don't want to compete like that.I've always been an advocate for quality over quantity and Redfin is purely the latter.