Based on the numbers, you seem to get the best of both worlds in being able to rent & generate substantial cashflow, while also being able to tap into your condo's equity.

We live fairly frugally, and traveling provides good pay, well I define it as good at least, so we have substantial income left over for investments. 

You obviously have substantial debt to income which affects it as well, and as you incur more debt, the credit score will decrease. 

Realtor.com shows comparable properties priced substantially lower: $1.575M (6 White Horse Meadows), $1.665M (2336 Pikeland Rd), $1.549M (2301 Diamond Rock Hill Rd), $1.5M (107 Mine Rd).2.

Would you be willing to pay that much if the appreciation possibility was substantial?

The example they give usually is that somebody has no equity and is in foreclosure so they Quit claim a deed to you, Then you contact the IRS to have the lien removed or released as long as you  can show there is no substantial equity.My question is this : Will the IRS work with you as a buyer of a property that has an IRS lien on it if you have NOT been given a deed to it  and don't own it yet?

without the risk and hassles of owning a rental.I was considering picking up 8 to 10 weeks in Vegas.. but then just bought a home in Summerlin instead as my wife wanted something more substantial . and so it turned out it will be come our primary.. with Oregon our secondary.. its a good tax strategy for us. 

But, yes, you're going to have substantial taxes if you sell.

Ippoloito states in his post, Patch of Land has been an investor favorite and has experienced substantial growth over the past couple of years.

To get technical, you will be going up against the Economic Substance Doctrine which states that a transaction has economic substance if: (1) the transaction changes in a meaningful way (apart from Federal income tax effects) the taxpayer’s economic position; and (2) the taxpayer has a substantial purpose (apart from Federal income tax effects) for entering into such transaction.By transferring your primary residence into a LLC, you would not be changing your economic position.