You may have to pay off the whole mortgage if the due on sale clause is exercised.No need to move in an LLC if it has a big mortgage and insurance.An LLC can also give you a false sense of security that can easily be pierced with a decent attorney.Just have correct insurance and properly maintain your property.

How should I properly underwrite to possibly offset the tax increase ? 

Cash for keys is a business decision, it is not an emotional decision, and usually the math works in the landlords favor.As others have said, the trick is to execute it properly.

I will need to explore the 1031 route and weight it against my opinion on the market. 

Chad Littell from CoStar notes that while institutional investors adjusted their strategies early in response to rate hikes, individual investors have only recently begun scaling back.July Sales ReportAccording to CoStar’s July Commercial Repeat-Sale Indices (CCRSI), the equal-weighted U.S. composite index, tracking smaller market sales, showed only a 0.2% price increase from June, with prices down 0.7% year-over-year, marking the first annual decline since 2012.

Note it doesn't apply to you if you are an owner-occupant in a property between 2-4 units.Plus, make sure you've held the security deposit properly...if it wasn't a special interest-bearing account, there could also be ramifications for that.It may be in your best interest to let those damages go and consider switching to a "move-fee" to avoid the security deposit requirements.

:Class A Properties:Cashflow vs Appreciation: Typically, 3-5 years for positive cashflow, but you get highest relative rent & value appreciation.Vacancy Est: Historically 10%, 5% the more recent norm.Tenant Pool: Majority will have FICO scores of 680+ (roughly 5% probability of default), zero evictions in last 7 years.Class B Properties:Cashflow vs Appreciation: Typically, decent amount of relative rent & value appreciation.Vacancy Est: Historically 10%, 5% should be applied only if proper research done to support.Tenant Pool: Majority will have FICO scores of 620-680 (around 10% probability of default), some blemishes, but should have no evictions in last 5 yearsClass C Properties:Cashflow vs Appreciation: Typically, high cashflow and at the lower end of relative rent & value appreciation.

You will need to get an attorney to draft proper documents which will include information about what it is you are doing.raising money today is challenging as people are losing money in other deals and hesitant to go into new deals, especially for newer sponsors or sponsors without a lot of skin in the gameit can still be done but you need to have rockstar sales people.

Take ownership of your mistake and learn to do the proper due diligence recommended above😊

Properly sealed pavers would not have soaked up the oil.Regardless, it seems like it is fairly easy to remove oil from pavers.