The US Government and the States have but one way to deal with this, taxes.

However the issue that I am running into is that it does not currently have a Tax Map Key.

We just think by taking cash out nontaxed and still cash flowing, while still having tax benefits, seems like a good idea.

How is it for preparing taxes? 

Quote from @Charlotte Wilson: Maybe I am overthinking this but when I look at properties to purchase that I plan to rent out, how do I make sure I am including all the potential additional “cost” besides the mortgage and property taxes?

Hey @Scott Chauncey, for the 2 SMLLCs, as long as they are disregarded to your personal tax return you can have them within the same QBO.

And 54% of the basis would be allocated to the 200K house.You'll have a small tax bill on the difference between your sale and purchase prices.  

Our mortgage at the moment is around $2100 including taxes and insurance, this would obviously go up if we do refinance.

Be mindful that there are rules that the lenders want you to check off.Furthermore, there are other rules on the tax side where you want to normally be under to get the most tax benefits.The magic number in both instances is '14 days'Lenders want you to stay atleast 14 days to meet the secondary home requirement.The tax accountant normally wants you to stay less than 14 days or 10% of the days it was used as a rental to treat it as a rental and not as a personal residence.Best of luck!

My question is, what is the best way to describe this scenario for tax purposes.