There’s a small annual fee for registration, so make sure you stay on top of this to avoid penalties.2.

You may be able to deduct mortgage interest and property taxes before the property is in service. 

That's 50k a year gone and you are losing tax write-offs and equity potential.

There are also additional costs of operating and maintaining an LLC, like separate bank accounts, annual report filings, tax filings, etc.2.

It is tax free in the sense that you will not owe taxes today on the cash-out.

At one time, I told people to spend money on a skip trace so they could file the in personam QT lawsuit (the one where you can served lawsuit papers on all defendants) and avoid the expense of the in rem QT lawsuit (the one where you need a GAL).

This avoids any conflicts of interest. 

I’m in the 33% tax bracket through my real job and this could be a big difference in taxes owed if we sold the property?

And you would get to indefinitely defer all tax on the gain from the sale.

We are now married and I expect we'll file our 2024 taxes jointly.