Oh, gotcha, yea that makes sense.

Here are the details of the property:Property Overview:Location: Texas2 lots, 2 warehouse buildingsFinancials:Mortgage: $4,897/month (balance: $530,000)Insurance: $830/monthProperty Tax: $1,800/monthBuilding 1:1 tenantRent: $7,570/month12,000 square feetBuilding 2:3 tenantsTenant 1: $2,850/month (5,000 square feet)Tenant 2: $1,793/month (2,500 square feet)Tenant 3: $895/month (1,250 square feet)The property was appraised for $2,200,000 three years ago.Given the current rental income and expenses, the cash flow is decent, but my family friend is looking to explore options that could potentially yield better returns.Would it make sense to:Sell the property outright and invest in higher cash-flow opportunities?

You need to properly maintain all this structure or it just gives a false sense of security.Secondly, why all cash? 

You sell your investments whenever it no longer makes business sense to hold them, not when you "need" it for tax reasons!

Does it make sense to start an LLC to hold my properties, and what are the pros and cons?

Bird dogging is a way to make money but its not gonna get you rich.WE have had many do some birddogging for us on the private lending side to find qualified people that need a loan and its interesting how many last a few weeks - I sense the same holds true for real estate bird dogs.

For Livermore, the activity is slower compared to the general Bay Area so you would need to be more cautious on picking the right property to flip, and the margin has to be large enough for it to make sense.

Would be looking at Tallahassee, FL between the hospital and downtownlive), but there are a few other locations which would make sense.   

I'm currently looking at using a VA loan for purchasing a duplex to live in one side & rent the other.I'm trying to do this now too in Michigan with a 2-4, whatever makes sense.

@Michael Nguyen I bought a SFH first because I found a good one that made financial sense.