Both of the members of the LLC we are hoping to do the cash out refinance for are also LLCs if that matters, so it would be distributed from one LLC to another LLC to hopefully the members pockets.Want to make sure that the money remains tax free the whole way and we don't have any surprises. 

Closing costs + rent ready costs + lease out costs - those you need to be compensated for and new investors are always surprised that they can add up to 5 or 10 or 15K.  

For example, most Developers in the Seattle area are taking many properties and turning them to condos since that is a booming market with high rental rates And sometimes more conveniently built and accommodating then a SFH.

I think the LLC also makes it easier to open a local bank account, which is convenient to pay utilities or other local bills or your property manager, etc.  

EDUCATE YOURSELF - yes, it will take time, but will lead to a selection that better meets your expectations & avoids potentially costly surprises!

My number 1 tip would be to go off market and find owner that wants to sell at a discount / prefers speed and convenience. 

EDUCATE YOURSELF - yes, it will take time, but will lead to a selection that better meets your expectations & avoids potentially costly surprises!

The latter takes available cash, but you may be surprised at what you can do if you are willing to put in the time!

You might be surprised, but your rental properties have more in common with dividend-paying stocks than you think!

Quote from @Pankaj Malik: I’m just really surprised that the tenant is not taking the option to break the lease break with a $ number offered (1 month rent plus reasonable amount for parts of house he wasn’t able to use) that is within a couple thousand dollars of what he wanted anyway.