Talk with a real estate lawyer as this may work a little different in each state. 

When filing the LLC return, it is important to ensure that these liabilities are accurately reflected on the balance sheet.However, it's essential to note that distributing the refinance proceeds among LLC members could potentially be viewed as a taxable event if there is no intent to repay these amounts to the LLC.

@Tim Delaney is an investor in the Buffalo market and shares many of your views on its long term potential!

That being said, lawyers aren't lenders, but they sometimes think they know everything.

We have three potential options.The first option is for me to completely owner-finance his purchase.

.- Many of these HCOL areas also have strict limitations on AirBnB or short-term rentals... that do not apply to owner-occupants - thus allowing for extreme cashflow potential for house-hackers.

Your property definitely has the potential to benefit from a cost segregation study.

Learn the eviction procedure for your area, perhaps contact a lawyer in the field to help you with this one, and get the fraudster you're currently housing out on the sidewalk to sleep in a cardboard box where they belong.You're going to lose plenty of money here, but this will never happen to you again, and you can minimize your losses if you move as quickly as possible.

A magistrate is the lowest level judge who deals with landlord/tenant and small claims cases but they don't even need to be a lawyer to get that position. 

Here you would have to put it in the MLS if your are with NAR, but it wouldn't syndicate out to all of the public sights, and you can send it to any potential buyer that you may know.