My goal is to work with those existing property owners to remove them entirely from the day-to-day operations of their STR, making their property a passive revenue source. 

Right now we are still in the process of removing two of the other three tenants (I think we finally made it, aside from a junk car left on the property) and working towards getting the place fully rented.

So incurring the fewest expenses is the cheapest exit plan.There is no tax advantage to refinancing the property first - in fact, the refi will often force the taxing authority to reassess the value of the property - which would likely remove any tax grandfathering you may have - raising your taxes.There is no advantage to doing a two step process like you mention.Randy

Hey Gagan, I am honestly flattered that you liked my design so much that you decided to use it, but you have to remove it.

We will add a addendum to the lease to remove my rental property manager and add owner.

Will need to deal with Land use, utilities, trees removal/mitigations.

We put 20-30K into a 180K property, and have refinanced it to remove all of our initial investment. 

Also, here is the current listing for the asset:https://buildout.com/connect/sharing/3125-crestdale-drive-ho...Based on this property, sounds like maybe the property didn't go into foreclosure, per se, but that the Key Principle stepped in and removed the operating partners due to mismanagement.  

It would seem that you have the option, but not the duty, to terminate the lease due to the bankruptcy, but I'm not sure why you would want to remove a paying tenant.

Best value at selling is to remove the JADU due to poor auction the result of mostly needing a house hacker   In addition, if you already have a regularSDU (which would be primary reason to add JADU over an ADU), the property by rule does not qualify for conventional financing.