Since I'm not a lawyer, there might be a specific reason, depending on your situation, why that might be useful.On the other hand, I've seen crazy large structures for small portfolios, and there are many attorneys willing to charge you for the help of setting them up. 

There is no point in doing a 1031 exchange if you expect a loss from the transaction.A 1031 is meant to defer your gain.There are numbers which you can analyze and stress which is not easy to analyze.It looks like you are stressed with this investment and I would sell.I personally, however, would look to make the improvement for $10,000 to get one of the other units up and running.

Reason being, i had teamed up with a local builder.

Keep in mind I am servicing my own HML s  PS Its great you come on here and communicate so the rumor mill does not go wild.

Congrats and knock out that extra debt you accumulated so you can save up for STR #2!

Transparency is key—being honest will help you avoid unnecessary stress and ensure peace of mind.

But I would be passing up on a big promotion that could lead to significant increase in income. 

Cozy was "good enough" for awhile but the lack of a mobile app and multiple tenants having issues setting up payments, etc caused me to look elsewhere.  

When we purchased it, it was fully renovated and set up as a 5 bed/1 bath Airbnb.

And they may consider selling the house quickly to an investor, who picked up on the process at the NOD stage, mailed a marketing piece, to which the homeowner responded.