@Cody Holt I would sell and take the proceeds and buy larger properties that are multifamily.

Feel free to inquire about their staff qualifications if it's a larger organization.2.

Ideally, we’d like to sell both of the rentals, and use the cash to place a down payment on a larger multi family home investment property, maybe valued somewhere around 400-600k.

@William Coet, as noted, it sort of depends on where you are looking to protect liability.The most common reason I hear when working with investors who invest in a syndication through their LLC is honestly for ease of bookkeeping and record keeping.  

Larger Syndications: When you see the syndicators achieving the larger raises that can attract the checks written by the private equity/family offices but are instead raising those funds in smaller friends and family check sizes, that would give me immediate pause.

Am I potentially exposing myself to some sort of issue here?  

Feel free to inquire about their staff qualifications if it's a larger organization.2.

The defaults start jumping up once you get under 600.https://askwonder.com/research/credit-scores-correlation-loa...If you do decide to take a lower credit score, make sure they are providing a larger deposit.

you dont a good agent repping a buyer is going to go to bat for them not U keep in mind many sellers lie about all sorts of things.. not saying your that way but it is common the industry.

You might need more capital and a larger down payment to make your numbers work, but that is what is working in todays market.