Account holder (you) are typically designated as the plan trustee (you don't need a TPA), which gives you total control over your plan assets.

Then at the time of distribution - account holder will be paying ordinary income tax.

The client would identify the properties in the portfolio and invest their exchange funds so that they are a percentage interest holder in the real estate.

This can give faith from a private lender; that you are willing to put money in the deal along with theirs.Do the right things like recording mortgage with title policy for lender and property insurance with lien holder information. 

My gut feeling is that the county and perhaps other lien holders that I'm not aware of, have harassed him in the past.

If the DST owner can sell quickly that's even better.10% return in RE is possible but one need to be a note holder/investing at debt syndication for riskier asset class (just look at GF there's lot of offers like that). 

We have listed our property and people are sending inquiries saying that they are voucher holders from different housing authorities.

The time depends on lease length and how long they've been living there.I would also recommend reaching out to their caseworker (if they have one) to let them know the lease will not be renewed.Section 8 voucher holders are incentivized to vacate quickly in order to keep their voucher and avoid having to pay full-market rent out of pocket elsewhere.Hope this helps!

However, the units are very badly damaged.I would like to file a claim through the loan holder's home owner's insurance.  

The program is in the first position as a lien holder on your home which means that no bank is going to finance or refinance a home where the bank is not the first lien holder.